Eagle Bulk Shipping Lower By 8% Thursday Morning Following $105 Million Liquidity Raise Announcement

Eagle Bulk Shipping Inc EGLE, a global owner of Supermax dry bulk vessels, announced after Wednesday's market close that it has reached an agreement with its lenders and holders of its equity to raise $105 million. Eagle Bulk Shipping stated that the transaction provides the company with $105 million in incremental liquidity, of which $60 million consist of a new second lien facility. The company also stands to benefit from a $14 million permanent reduction in its first lien minimum liquidity requirement, a deferral of more than $31 million in amortization payments through 2018 and full access to a $50 million revolver. Eagle Bulk Shipping also highlighted that the transaction will allow it to "opportunistically pursue growth opportunities in the dry bulk market." Chief Executive Officer Gary Vogel stated, "We are very pleased to have reached this comprehensive agreement that strengthens Eagle Bulk's capital structure. The combination of additional liquidity and the enhanced financial flexibility it provides greatly improves our ability to persevere through the current market, and a new corporate structure will enable us to pursue market opportunities. It is, in short, a new foundation for long-term, sustainable success backed by strong support from our lenders and shareholders. Shares of Eagle Bulk Shipping were trading lower by more than 8 percent early Thursday morning.