Scorpio sells newbuilds, gets financing for Ultramax

APRIL 21, 2015 — Scorpio Bulkers Inc. (NYSE: SALT), which has some 6.3 million dwt of newbuildings on order, is switching things around a bit. It announced today that it has entered into agreements to sell three Capesize newbuilding dry bulk vessels, a Kamsarmax newbuilding dry bulk vessel and three LR1 newbuilding product tankers for approximately $290 million in aggregate, and has received financing on an Ultramax newbuilding dry bulk vessel for an amount of up to $17 million.

The Capesize vessels are currently being constructed at a Romanian shipyard, and have expected delivery dates between the fourth quarter of 2015 and the second quarter of 2016. The Kamsarmax vessel is currently being constructed by a Chinese shipbuilder and has an expected delivery date in the first quarter of 2016. The LR1 product tankers are currently being constructed in South Korea, two of them are scheduled for delivery during the second quarter of 2017 and the other during the third quarter of 2017.

Under the terms of its existing $409 million financing facility, Scorpio has secured financing on an Ultramax newbuilding vessel thanks to the substitution capability created by the removal of the financing on one of the three Capesize vessels that it has agreed to sell. The Ultramax vessel is currently being constructed in Japan, and has an expected delivery date in the third quarter of 2015.

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