Scorpio Bulkers Inc. (NYSE:SALT) has agreed to sell and leaseback three Ultramax vessels (SBI Pegasus, SBI Subaru and SBI Ursa) and four Kamsarmax vessels (SBI Lambada, SBI Macarena, SBI Carioca and SBI Capoeira) to CMB Financial Leasing Co., Ltd.
The company says that when the deal completes, estimated to be in the second quarter of 2019, it expects its liquidity to increase by $57.2 million in aggregate, consisting of $45.4 million on closing after the repayment of outstanding debt and an additional tranche of up to $11.8 million for installation of scrubbrts on the seven vessels.
Scorpio will bareboat charter-in the vessels for a period of seven years and has purchase options beginning after the end of the third year of each agreement. There is also a purchase option for each vessel upon the expiration of each agreement.
Scorpio Chairman and CEO Emanuele Lauro commented, “We have undertaken a number of initiatives recently to enhance our liquidity. This transaction represents a single and important step, but we will continue to take actions which strengthen our balance sheet and, as importantly, address the valuation of our stock.”