Scorpio pens loan to finance Capesize newbuilds

Bulk transporter Scorpio Bulkers Inc. has signed a Memorandum of Understanding with ABN Amro Bank N.V. and the Export-Import Bank of China for a loan facility of up to USD 234.9 million.

Scorpio said that the loan will be used to finance up to 60% of

the contract price of seven Capesize vessels currently under construction at Shanghai Waigaoqiao Shipbuilding Co., Ltd, China slated for delivery between Q1 2015 and Q2 2016.

The terms and conditions of the loan facility, including covenants, will be similar to those in the Scorpio’s existing credit facilities and customary for financings of this type.

Scorpio Bulkers currently owns two Kamsarmax vessels, time charters-in 22 dry bulk vessels and has contracted for 78 dry bulk vessels.

The newbuilds comprise of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels and have been ordered from shipyards in Japan, South Korea, China and Romania.

According to Scorpio, upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes.