Eagle Bulk Shipping Unveils Dividend Policy, $50M Stock Buyback, $400M Refinancing

Eagle Bulk Shipping Inc. EGLE announced a dividend policy and a $50 million share repurchase program in conjunction with the closing of a $400 million refinancing.
The company intends to pay quarterly cash dividends equal to a minimum of 30% of net income, but not less than $0.10 per share. The first dividend is scheduled to be based on Q3 2021 financial results, with payment in November.
The new facility comprised a $300 million term loan and a $100 million revolving credit facility, which will both be secured by 49 vessels. The facility bears an interest rate of LIBOR plus a margin of 2.10% - 2.80%.
The company noted that the refinancing had improved its capital structure and increased financial flexibility, resulting in a reduction of $8 million in annual interest expense and an extension of the nearest bank debt maturity to the end of 2026.
The company used the proceeds to repay all amounts outstanding under three existing facilities.
Price Action: EGLE shares are trading lower by 3.02% at $50.42 on the last check Monday.