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Eagle Bulk Shipping Inc. Reports Second Quarter 2012 Results

NEW YORK, Aug. 8, 2012 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today announced its results for the second quarter ended June 30, 2012.

For the Second Quarter:

  • Net reported loss of $23.1 million or $1.46 per share (based on a weighted average of 15,880,392 diluted shares outstanding for the quarter), compared to net loss of $1.4 million, or $0.09 per share, for the comparable quarter in 2011.
  • Net revenues of $48.5 million, compared to $76.4 million for the comparable quarter in 2011. Gross time charter and freight revenues of $50.5 million, compared to $81.1 million for the comparable quarter in 2011.
  • EBITDA, as adjusted for exceptional items under the terms of the Company's credit agreement, was $10.0 million for the second quarter of 2012, compared with $28.8 million for the second quarter of 2011.
  • Fleet utilization rate of 99.5%.
  • All references to common stock and per share data have been retrospectively adjusted to reflect a 1 for 4 reverse stock split on May 22, 2012.
  • On June 20, 2012, the Company entered into a Fourth Amended and Restated Credit Agreement to its credit facility agreement.

Sophocles N. Zoullas, Chairman and CEO, commented, "Eagle Bulk's second quarter results reflect ongoing instability and weakness in the dry bulk market, with the Baltic Index declining approximately 40% this year alone. Our successfully amended credit agreement represents an important achievement in this environment, as we aligned our balance sheet with the realities of the current market without compromising our competitiveness when the market does recover.

"Going forward, we will continue pursuit of a strategy that maximizes revenue upside through a flexible, opportunistic chartering strategy, a diversified cargo mix that stabilizes earnings, and operational excellence and efficiency."

Amended Credit Agreement

On June 20, 2012, the Company entered into a Fourth Amended and Restated Credit Agreement ("Fourth Amended") to its existing credit facility, dated as of October 19, 2007. Highlights of the agreement include the following:

  • Permanently waives any purported defaults or events of defaults.
  • $1,129,478,741 presently outstanding under the existing revolver will convert into a term loan, with a maturity set to December 31, 2015. Subject to certain conditions, the amendment provides an option to the Company to extend the maturity date an additional 18 months to June 30, 2017.
  • Eagle Bulk will have access to a liquidity facility in the aggregate amount of $20,000,000.
  • The amendment requires no fixed repayments of principal until maturity, and is subject to a quarterly sweep of cash in excess of $20,000,000.
  • All amounts presently outstanding under the existing credit agreement will bear interest at LIBOR plus a cash margin of 3.50% and a payment-in-kind ("PIK") margin of 2.50%. This aggregate margin can be reduced if Company leverage is lowered.
  • Replaces all existing financial covenants and substitutes them with covenants that phase-in over the next three years.
  • Permits within certain parameters for the purchase or sale of vessels and management of third party vessels.
  • Company issued 3,148,584 warrants convertible on a cashless basis into shares of the Company's common stock, par value $0.01 (the "Warrant Shares"), at a strike price of $0.01 per share of common stock. One-third of the warrants are exercisable immediately, the next third of the warrants are exercisable when the price of the Company's common stock reaches $10.00 per share and the last third of the warrants are exercisable when the price of the Company's common stock reaches $12.00 per share. Unexercised warrants will expire on June 20, 2022.

Additional detail about the amendment can be found in the Company's 8-K Disclosure Statement, a copy of which was filed with the Securities and Exchange Commission on June 20, 2012, and is available at www.sec.gov.

Results of Operations for the three-month period ended June 30, 2012 and 2011

For the second quarter of 2012, the Company reported a net loss of $23,106,239 or $1.46 per share, based on a weighted average of 15,880,392 diluted shares outstanding. In the comparable second quarter of 2011, the Company reported net loss of $1,438,278 or $0.09 per share, based on a weighted average of 15,642,830 diluted shares outstanding.

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