Scorpio Bulkers Inc. (NYSE:SALT) (Scorpio Bulkers) announced on Wednesday (Feb12) that it has agreed to sell and leaseback two Ultramax vessels (SBI Cronos and SBI Achilles) and one Kamsarmax vessel (SBI Lynx) to Ocean Yield ASA for a total financing consideration of $62.8 million.  

Scorpio Bulkers Inc. Announces Sale and Leaseback Agreements for Three Dry Bulk Vessels
Caption: Bulk carrier SBI Achilles - Image courtesy of Cengiz Tokgöz

Upon completion, which is estimated to take place in the first quarter of 2020, the Company’s liquidity is expected to increase by up to $33.6 million after the repayment of outstanding debt. 

The Company will also be able to drawdown on an additional tranche of up to $4.5 million in aggregate for installation of exhaust gas cleaning systems (“scrubbers”) on the three vessels.

As part of the agreements, the Company will bareboat charter-in the SBI Cronos for a period of nine years, the SBI Achilles for a period of ten years and the SBI Lynx for a period of twelve years. In addition, the Company has several purchase options during the charter period of each agreement. There is also a purchase option for each vessel upon the expiration of each agreement.

These lease financing arrangements are subject to customary conditions precedent and the execution of definitive documentation.

Source: Scorpio Bulkers