Akin Gump Advises Eagle Bulk Shipping in Comprehensive Balance Sheet Recapitalization
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(New York) – Akin Gump advised Eagle Bulk Shipping, Inc. as it reached an agreement with the company's lenders and holders of approximately 75 percent of the company's outstanding equity for a comprehensive balance-sheet recapitalization.
The transaction provides Eagle Bulk with approximately $105 million in incremental liquidity, which includes a new second lien facility comprising $60 million in new capital from existing shareholders, as well as new capital providers.
Additionally, the deal features the following:
- In addition to the $60 million of proceeds from the new second lien facility, Eagle Bulk will benefit from additional incremental liquidity through a $14 million permanent reduction in the company's first lien minimum liquidity requirement, a deferral of more than $31 million in amortization payments through 2018 and renewed, full access to the company's $50 million revolver.
- Interest on the new second-lien debt is paid-in-kind and is payable in cash only upon loan maturity. In addition to receipt of this paid-in-kind interest, new second lien noteholders will be issued shares of common stock equivalent to 90 percent of the outstanding common stock of Eagle Bulk after the issuance.
- The transaction also includes changes to Eagle Bulk's organizational structure that will allow the company to opportunistically pursue growth opportunities in the dry bulk market.
The Akin Gump team advising Eagle Bulk was led by corporate partner Daniel Fisher and included partner Scott Welkis, counsel Alan J. Feld and financial restructuring partner Ira Dizengoff.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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