UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 6, 2006
EAGLE BULK SHIPPING INC.
(Exact name of each Registrant as specified in its Charter)
Marshall Islands 000-51366 98-0453513
(State or other jurisdiction (Commission File (IRS employer
of incorporation or organization) Number) identification no.)
477 Madison Avenue 10022
New York, New York (Zip Code)
(Address of principal
executive offices)
(Registrant's telephone number, including area code): (212) 785-2500
(Former name or former address, if changed
since last report.)
Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 7.01. Regulation FD
On July 6, 2006 the Company issued a press release announcing receipt
of a commitment to increase the size of its credit facility to $450 million. A
copy of the press release is attached as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
July 7, 2006
EAGLE BULK SHIPPING INC.
By: /s/ Sophocles N. Zoullas
--------------------------------
Sophocles N. Zoullas
Chief Executive Officer and President
Exhibit 99.1
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Eagle Bulk Shipping Inc. Increases Size of Credit Facility to $450 Million
NEW YORK, July 6, 2006 -- Eagle Bulk Shipping Inc. (NasdaqGS: EGLE), a global
marine transportation company specializing in the Supramax segment of the
dry bulk shipping industry, today announced that the Company has received a
commitment from its lender, the Royal Bank of Scotland plc, to increase and
amend its revolving credit facility to $450 million from $330 million.
Sophocles Zoullas, Chairman and Chief Executive Officer, commented, "The
Company's amended credit facility will enhance our ability to achieve our
business goals and lowers our overall cost of capital. The facility's increased
size will result in the Company having an undrawn commitment of over $230
million once our latest vessel acquisitions announced on June 23, 2006 are
completed. We believe that the continued support of the Royal Bank of Scotland
plc in increasing the size of the facility on an unsyndicated basis underscores
the Company's sound business model. Additionally, we believe that the facility's
amended credit terms will prove beneficial to the Company, and therefore our
shareholders, as we grow the business going forward."
The entire $450 million facility will be available for a period of six years
from the availability date, compared to four years remaining in the commitment
period of the Company's existing facility. There are no principal repayment
obligations during this initial six-year period. Over the remaining four years,
the facility will reduce in semi-annual amounts of $25,000,000 with a final
reduction of $250,000,000 occurring simultaneously with the last semi-annual
reduction.
The amended facility, which is subject to the execution of definitive
documentation, will bear interest at the rate of 0.75% to 0.85% over LIBOR
(decreased from 0.95% over LIBOR), depending upon the amount of debt drawn as a
percentage of the value of the Company's vessels. The Company will pay a
commitment fee of 0.25% per annum (decreased from 0.40%) on the undrawn amount
of the facility.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New
York City. We are the largest U.S.-based owner of Handymax dry bulk vessels,
which are dry bulk vessels that range in size from 35,000 to 60,000 deadweight
tons, or dwt, and transport a broad range of major and minor bulk cargoes,
including iron ore, coal, grain, cement and fertilizer, along worldwide shipping
routes. Our strategy is to charter our modern fleet primarily pursuant to one-
to three-year time charters to allow us to take advantage of the stable cash
flow and high utilization rates that are associated with medium- to long-term
time charters.
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, underlying
assumptions and other statements, which are other than statements of historical
facts, as well as the completion and acceptance of definitive documentation. The
forward-looking statements in this release are based upon various assumptions,
many of which are based, in turn, upon further assumptions, including without
limitation, management's examination of historical operating trends, data
contained in our records and other data available from third parties. Although
Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, Eagle Bulk Shipping Inc. cannot assure you that it will
achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies and currencies, general market conditions, including
changes in charterhire rates and vessel values, changes in demand that may
affect attitudes of time charterers to scheduled and unscheduled drydocking,
changes in our vessel operating expenses, including dry-docking and insurance
costs, or actions taken by regulatory authorities, ability of our counterparties
to perform their obligations under sales agreements and charter contracts on a
timely basis, potential liability from future litigation, domestic and
international political conditions, potential disruption of shipping routes due
to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by Eagle Bulk
Shipping Inc. with the U.S. Securities and Exchange Commission.
Visit our website at http://www.eagleships.com
CONTACT: Eagle Bulk Shipping Inc.
Investors:
Alan Ginsberg
212-785-2500
Mandelbaum & Morgan
Media:
Jonathan Morgan
212-741-0014
SK 25083 0001 684017