|
|
Republic of the Marshall Islands
|
98–0453513
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
300 First Stamford Place, 5
th
Floor
|
|
Stamford, Connecticut
|
06902
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer ☐
|
Accelerated filer
x
|
Non-Accelerated filer ☐
|
Smaller reporting company
x
|
Emerging growth company ☐
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
•
|
Focusing on the most attractive drybulk vessel segment
|
•
|
Employing an active management strategy for fleet trading
|
•
|
Executing on fleet renewal and growth
|
•
|
Performing technical management in-house
|
•
|
Implementing a prudent approach to balance sheet management
|
•
|
Upholding strong corporate governance
|
•
|
Enacting Corporate Social Responsibility (“CSR”)
|
•
|
Abiding by our values
|
◦
|
PASSION for excellence drives us
|
◦
|
EMPOWERMENT of our people leads to better results
|
◦
|
INTEGRITY defines our culture
|
◦
|
RESPONSIBILITY to safety underpins every decision
|
◦
|
FORWARD THINKING takes us to a more successful tomorrow
|
Vessel
|
|
Class
|
|
Dwt
|
|
Year Built
|
|
|
|
|
|
|
|
|
|
Bittern
|
|
Supramax
|
|
57,809
|
|
|
2009
|
|
|
|
|
|
|
|
|
Canary
|
|
Supramax
|
|
57,809
|
|
|
2009
|
|
|
|
|
|
|
|
|
Cardinal
|
|
Supramax
|
|
55,362
|
|
|
2004
|
|
|
|
|
|
|
|
|
Condor
|
|
Supramax
|
|
50,296
|
|
|
2001
|
|
|
|
|
|
|
|
|
Crane
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Crested Eagle
|
|
Supramax
|
|
55,989
|
|
|
2009
|
|
|
|
|
|
|
|
|
Crowned Eagle
|
|
Supramax
|
|
55,940
|
|
|
2008
|
|
|
|
|
|
|
|
|
Egret Bulker
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Fairfield Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
Gannet Bulker
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Golden Eagle
|
|
Supramax
|
|
55,989
|
|
|
2010
|
|
|
|
|
|
|
|
|
Goldeneye
|
|
Supramax
|
|
52,421
|
|
|
2002
|
|
|
|
|
|
|
|
|
Grebe Bulker
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Greenwich Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
Groton Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
Hamburg Eagle
|
|
Ultramax
|
|
63,334
|
|
|
2014
|
|
|
|
|
|
|
|
|
Hawk I
|
|
Supramax
|
|
50,296
|
|
|
2001
|
|
|
|
|
|
|
|
|
Ibis Bulker
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Imperial Eagle
|
|
Supramax
|
|
55,989
|
|
|
2010
|
|
|
|
|
|
|
|
|
Jaeger
|
|
Supramax
|
|
52,483
|
|
|
2004
|
|
|
|
|
|
|
|
|
Jay
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Kestrel I
|
|
Supramax
|
|
50,351
|
|
|
2004
|
|
|
|
|
|
|
|
|
Kingfisher
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Madison Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
Martin
|
|
Supramax
|
|
57,809
|
|
|
2010
|
|
|
|
|
|
|
|
|
Merlin
|
|
Supramax
|
|
50,296
|
|
|
2001
|
|
|
|
|
|
|
|
|
Mystic Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
New London Eagle
|
|
Ultramax
|
|
63,140
|
|
|
2015
|
|
|
|
|
|
|
|
|
Nighthawk
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Oriole
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Osprey I
|
|
Supramax
|
|
50,206
|
|
|
2002
|
|
|
|
|
|
|
|
|
Owl
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Petrel Bulker
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Puffin Bulker
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Roadrunner Bulker
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Rowayton Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
Sandpiper Bulker
|
|
Supramax
|
|
57,809
|
|
|
2011
|
|
|
|
|
|
|
|
|
Shrike
|
|
Supramax
|
|
53,343
|
|
|
2003
|
|
|
|
|
|
|
|
|
Singapore Eagle
|
|
Ultramax
|
|
63,386
|
|
|
2017
|
|
|
|
|
|
|
|
|
Skua
|
|
Supramax
|
|
53,350
|
|
|
2003
|
|
|
|
|
|
|
|
|
Southport Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2013
|
|
|
|
|
|
|
|
|
Stamford Eagle
|
|
Ultramax
|
|
61,530
|
|
|
2016
|
|
|
|
|
|
|
|
|
Stellar Eagle
|
|
Supramax
|
|
55,989
|
|
|
2009
|
|
|
|
|
|
|
|
|
Stonington Eagle
|
|
Ultramax
|
|
63,301
|
|
|
2012
|
|
|
|
|
|
|
|
|
Tern
|
|
Supramax
|
|
50,209
|
|
|
2003
|
|
|
|
|
|
|
|
|
Thrasher
|
|
Supramax
|
|
53,360
|
|
|
2010
|
|
|
|
|
|
|
|
|
Westport Eagle
|
|
Ultramax
|
|
63,344
|
|
|
2015
|
|
|
|
|
|
|
|
1)
|
Time charter-out
|
2)
|
Voyage Chartering
|
3)
|
Vessel + Cargo Arbitrage
|
4)
|
Time charter-in
|
5)
|
Hedging (FFAs)
|
6)
|
Asymmetric Optionality
|
Charter Characteristics
|
Voyage
Charter
|
|
Time
Charter
|
|
Index
Charter
|
|
Commercial
Pool (5)
|
Typical contract length
|
Single
voyage
|
|
One or multiple
voyages
|
|
Six months
or more
|
|
Varies
|
Hire rate basis (1)
|
Per MT of cargo
loaded
|
|
Daily
|
|
Linked to
BSI
|
|
Varies
|
Voyage expenses (2)
|
We pay
|
|
Customer
pays
|
|
Customer
pays
|
|
Pool pays
|
Vessel expenses for owned vessels (3)
|
We pay
|
|
We pay
|
|
We pay
|
|
We pay
|
Charter hire expense for vessels chartered-in
|
We pay
|
|
We pay
|
|
We pay
|
|
We pay
|
Off-hire (4)
|
Customer does not pay
|
|
Customer does not pay
|
|
Customer does not pay
|
|
Pool does
not pay
|
(1)
|
“Hire rate” refers to a sum of money paid to the vessel owner by a charterer under a time charter party for the use of a vessel. "Freight rate basis" means the sum of money paid to the vessel owner under a voyage charter or contract of affreightment (as defined below) based on the unit measurement of cargo loaded. “BSI” refers to “Baltic Supramax Index” and the daily hire rate varies based on the Index. The BSI is an index published by the Baltic Exchange which tracks the gross time charter spot value for Supramax.
|
(2)
|
“Voyage expenses” include fuel, port charges, canal tolls, and brokerage commissions paid by the Company.
|
(3)
|
“Vessel expenses” include crewing, repairs and maintenance, insurance, stores, lubes and communication expenses.
|
(4)
|
“Off-hire” refers to the time a vessel is unavailable to perform the service either due to scheduled or unscheduled repairs.
|
(5)
|
The Company does not presently employ vessels in a Commercial Pool.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
Time Charter
|
|
27
|
|
27
|
|
23
|
Voyage Charter
|
|
18
|
|
18
|
|
17
|
Index Charter
|
|
—
|
|
—
|
|
—
|
Commercial Pool
|
|
—
|
|
—
|
|
1
|
Drydock
|
|
2
|
|
2
|
|
1
|
Total
|
|
47
|
|
47
|
|
42
|
•
|
Commercial operations, which involve chartering and operating a vessel; and
|
•
|
Technical operations, which involve maintaining, crewing and repairing a vessel.
|
•
|
Commercial operations and technical supervision;
|
•
|
Vessel maintenance and repair;
|
•
|
Vessel acquisition and sale;
|
•
|
Legal, compliance and insurance services and
|
•
|
Finance, accounting, treasury and information technology services.
|
•
|
Injury to, destruction or loss of, or loss of use of, natural resources and related assessment costs;
|
•
|
Injury to, or economic losses resulting from, the destruction of real and personal property;
|
•
|
Net loss of taxes, royalties, rents, fees or net profit revenues resulting from injury, destruction or loss of real or personal property, or natural resources;
|
•
|
Loss of subsistence use of natural resources that are injured, destroyed, or lost;
|
•
|
Lost profits or impairment of earning capacity due to injury, destruction or loss of real or personal property or natural resources; and
|
•
|
Net cost of increased of additional public services necessitated by removal activities following a discharge of oil such as protection from fire, safety or health hazards, and loss of subsistence use of natural resources.
|
•
|
On-board installation of automatic identification systems to provide a means for the automatic transmission of safety-related information from among similarly equipped ships and shore stations, including information on a ship’s identity, position, course, speed and navigational status;
|
•
|
On board installation of ship security alert systems, which do not sound on the vessel but only alert the authorities on shore; the development of vessel security plans;
|
•
|
Ship identification number to be permanently marked on a vessel’s hull;
|
•
|
A continuous synopsis record kept onboard showing a vessel’s history including the name of the ship, the state whose flag the ship is entitled to fly, the date on which the ship was registered with that state, the ship’s identification number, the port at which the ship is registered and the name of the registered owner(s) and their registered address; and
|
•
|
Compliance with flag state security certification requirements.
|
•
|
Annual Surveys.
For seagoing ships, annual surveys are conducted for the hull and the machinery, including the electrical plant, and where applicable for special equipment classed, within three months before or after each anniversary date of the date of commencement of the class period indicated in the certificate.
|
•
|
Intermediate Surveys.
Extended annual surveys are referred to as intermediate surveys and typically are conducted two and one-half years after commissioning and each class renewal. Intermediate surveys are to be carried out at or between the second or third annual survey.
|
•
|
Class Renewal Surveys.
Class renewal surveys, also known as special surveys, are carried out for the ship’s hull, machinery, including the electrical plant and for any special equipment classed, at the intervals indicated by the character of classification for the hull. At the special survey the vessel is thoroughly examined, including audio-gauging to determine the thickness of the steel structures. Should the thickness be found to be less than class requirements, the classification society would prescribe steel renewals. The classification society may grant a one year grace period for completion of the special survey. Substantial amounts of money may have to be spent for steel renewals to pass a special survey if the vessel experiences excessive wear and tear. In lieu of the special survey approximately every five years, depending on whether a grace period was granted, a ship owner has the option of arranging with the classification society for the vessel’s hull or machinery to be on a continuous survey cycle, in which every part of the vessel would be surveyed within a five year cycle. At an owner’s application, the surveys required for class renewal may be split according to an agreed schedule to extend over the entire period of class. This process is referred to as continuous class renewal.
|
•
|
it is organized in a qualified foreign country, which is one that grants an ''equivalent exemption'' from tax to corporations organized in the United States in respect of each category of shipping income for which exemption is being claimed under Section 883 and to which we refer as the ''Country of Organization Test''; and
|
•
|
one of the following tests is met:
|
◦
|
more than 50% of the value of its shares is beneficially owned, directly or indirectly, by qualified shareholders, which as defined includes individuals who are ''residents'' of a qualified foreign country, to which we refer as the ''50% Ownership Test'';
|
◦
|
subject to an exception for closely-held corporations, its shares are ''primarily and regularly traded on an established securities market'' in a qualified foreign country or in the United States, to which we refer as the "Publicly-Traded Test"; or
|
◦
|
it is a ''controlled foreign corporation'' and satisfies an ownership test, to which, collectively, we refer to as the ''CFC Test.''
|
•
|
the Company has, or is considered to have, a fixed place of business in the United States involved in the earning of United States source shipping income; and
|
•
|
substantially all of the Company's United States source shipping income is attributable to regularly scheduled transportation, such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the United States.
|
•
|
at least 75% of our gross income for such taxable year consists of passive income (e.g., dividends, interest, capital gains and rents derived other than in the active conduct of a rental business); or
|
•
|
at least 50% of the average value of our assets during such taxable year produce, or are held for the production of, passive income
|
•
|
the excess distribution or gain would be allocated ratably over the Non-Electing Holder's aggregate holding period for the common stock;
|
•
|
the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which the Company was a passive foreign investment company, would be taxed as ordinary income and would not be ''qualified dividend income''; and
|
•
|
the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year.
|
•
|
The gain is effectively connected with the Non-United States Holder’s conduct of a trade or business in the United States (and, if the Non-United States holder is entitled to the benefits of an income tax treaty with respect to that gain, that gain is attributable to a permanent establishment maintained by the Non-United States holder in the United States); or
|
•
|
The Non-United States Holder is an individual who is present in the United States for 183 days or more during the taxable year of disposition and other conditions are met.
|
•
|
Fail to provide an accurate taxpayer identification number;
|
•
|
Are notified by the IRS that you have failed to report all interest or dividends required to be shown on your federal income tax returns; or
|
•
|
In certain circumstances, fail to comply with applicable certification requirements.
|
•
|
Employing our fleet at charter hire rates below our breakeven levels which could negatively impact our ability to operate and generate a profit. Operating at below breakeven levels for a prolonged period of time may leave us with insufficient cash resources to meet certain obligations, including the payment of interest and principal on our debt, causing us to potentially breach financial covenants under our existing credit facilities and bond terms.
|
•
|
Our charterers may fail to meet their obligations under existing time charter or voyage charter agreements.
|
•
|
The market value of our fleet could decrease, causing us to potentially recognize losses if vessels are sold or if their values impaired. Additionally, a decline in the value of our fleet could cause us to breach certain covenants under our existing credit facilities and bond terms.
|
•
|
supply of and demand for energy resources, commodities, and industrial products;
|
•
|
changes in the exploration or production of energy resources, commodities, consumer and industrial products;
|
•
|
the location of regional and global exploration, production, and manufacturing facilities;
|
•
|
the location of consuming regions for energy resources, commodities, semi-finished and finished consumer and industrial products;
|
•
|
the globalization of production and manufacturing;
|
•
|
global and regional economic and political conditions, including trade agreements among nations, armed conflicts and terrorist activities; embargoes and strikes;
|
•
|
developments in international trade;
|
•
|
changes in seaborne and other transportation patterns, including the distance cargo is transported by sea;
|
•
|
environmental and other regulatory developments;
|
•
|
currency exchange rates; and
|
•
|
weather.
|
•
|
the number of newbuilding deliveries;
|
•
|
port and canal congestion;
|
•
|
the scrapping of older vessels;
|
•
|
vessel casualties;
|
•
|
weather;
|
•
|
price of fuel;
|
•
|
slow steaming;
|
•
|
statutory and regulatory changes requiring the purchase and installation of new equipment to continue to trade; and
|
•
|
the number of vessels that are out of service, namely those that are laid-up, drydocked awaiting repairs or otherwise not available for hire.
|
•
|
prevailing level of charter rates;
|
•
|
general economic and market conditions affecting the shipping industry;
|
•
|
types, sizes, and ages of vessels;
|
•
|
supply of and demand for vessels;
|
•
|
other modes of transportation;
|
•
|
cost of new buildings;
|
•
|
governmental or other regulations;
|
•
|
the need to upgrade secondhand and previously owned vessels as a result of charterer requirements, technological advances in vessel design or equipment or otherwise; and
|
•
|
technological advances.
|
•
|
marine disaster;
|
•
|
environmental accidents;
|
•
|
cargo and property losses or damage;
|
•
|
business interruptions caused by mechanical failure, human error, war, terrorism, political action in various countries, labor strikes or adverse weather conditions; and
|
•
|
piracy.
|
•
|
locating and acquiring suitable vessels;
|
•
|
obtaining required financing on acceptable terms;
|
•
|
identifying and consummating acquisitions or joint ventures;
|
•
|
enhancing our customer base; and
|
•
|
managing our expansion.
|
•
|
actual or anticipated fluctuations in our quarterly and annual results and those of other public companies in our industry;
|
•
|
announcements by us or our competitors of significant contracts, acquisitions or capital commitments;
|
•
|
mergers and strategic alliances in the shipping industry;
|
•
|
terrorist acts;
|
•
|
future sales of our common shares or other securities;
|
•
|
market conditions in the shipping industry;
|
•
|
economic and regulatory trends;
|
•
|
shortfalls in our operating results from levels forecast by securities analysts;
|
•
|
announcements concerning us or our competitors;
|
•
|
the general state of the securities market; and
|
•
|
investors’ perception of us and the drybulk shipping industry.
|
Plan Category
|
|
Securities to be issued upon exercise of outstanding options, warrants and rights (1)
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Remaining securities for future issuance under equity compensation plans (1)
|
||||
Equity compensation plans approved by security holders
|
|
2,005,421
|
|
|
$
|
4.85
|
|
|
1,471,709
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
Total
|
|
2,005,421
|
|
|
4.85
|
|
|
1,471,709
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||||||||||||
Income Statement Data (a)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
Period from October 16,
2014 to December 31, 2014 (a) |
|
Period from January 1,
2014 to October 15, 2014 (a) |
||||||||||||
Revenues, net
|
|
$
|
310,094
|
|
|
$
|
236,785
|
|
|
$
|
124,493
|
|
|
$
|
103,857
|
|
|
$
|
31,090
|
|
|
$
|
123,150
|
|
Voyage expenses
|
|
79,566
|
|
|
62,351
|
|
|
42,094
|
|
|
23,832
|
|
|
6,262
|
|
|
14,704
|
|
||||||
Vessel expenses
|
|
81,336
|
|
|
78,607
|
|
|
74,017
|
|
|
86,329
|
|
|
17,331
|
|
|
71,679
|
|
||||||
Charter hire expenses
|
|
38,046
|
|
|
31,284
|
|
|
12,845
|
|
|
4,126
|
|
|
1,043
|
|
|
188
|
|
||||||
Depreciation and Amortization
|
|
37,717
|
|
|
33,691
|
|
|
38,884
|
|
|
43,001
|
|
|
8,782
|
|
|
61,239
|
|
||||||
General and Administrative Expenses
|
|
36,157
|
|
|
33,126
|
|
|
22,906
|
|
|
25,537
|
|
|
5,933
|
|
|
18,679
|
|
||||||
Restructuring Charges
|
|
—
|
|
|
—
|
|
|
5,869
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Vessel Impairment*
|
|
—
|
|
|
—
|
|
|
129,028
|
|
|
50,873
|
|
|
—
|
|
|
—
|
|
||||||
(Gain)/loss on Sale of Vessels
|
|
(335
|
)
|
|
(2,135
|
)
|
|
102
|
|
|
5,697
|
|
|
—
|
|
|
—
|
|
||||||
Total Operating Expenses
|
|
272,487
|
|
|
236,925
|
|
|
325,745
|
|
|
239,395
|
|
|
39,351
|
|
|
166,489
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
|
25,744
|
|
|
29,377
|
|
|
21,799
|
|
|
11,927
|
|
|
2,360
|
|
|
60,737
|
|
||||||
Interest income
|
|
(585
|
)
|
|
(651
|
)
|
|
(215
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(8
|
)
|
||||||
Other (income)/expense
|
|
(126
|
)
|
|
(38
|
)
|
|
687
|
|
|
838
|
|
|
884
|
|
|
—
|
|
||||||
Reorganization expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
427,735
|
|
||||||
Loss on debt extinguishment **
|
|
—
|
|
|
14,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income/(loss)
|
|
$
|
12,575
|
|
|
$
|
43,797
|
|
|
$
|
(223,523
|
)
|
|
$
|
(148,297
|
)
|
|
$
|
(11,549
|
)
|
|
$
|
(531,803
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Share and Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic income/(loss) per share
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
|
$
|
(78.88
|
)
|
|
$
|
(6.16
|
)
|
|
$
|
(29.78
|
)
|
Diluted income/(loss) per share
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
|
$
|
(78.88
|
)
|
|
$
|
(6.16
|
)
|
|
$
|
(29.78
|
)
|
Weighted Average Shares Outstanding – Diluted
|
|
71,802
|
|
|
69,182
|
|
|
20,566
|
|
|
1,881
|
|
|
1,875
|
|
|
17,857
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by/(used in) operating activities
|
|
$
|
45,470
|
|
|
$
|
(10,037
|
)
|
|
$
|
(45,434
|
)
|
|
$
|
(43,787
|
)
|
|
$
|
(279
|
)
|
|
$
|
(19,465
|
)
|
Net cash (used in) / provided by investing activities
|
|
(31,014
|
)
|
|
(155,250
|
)
|
|
(9,347
|
)
|
|
10,252
|
|
|
4,206
|
|
|
(491
|
)
|
||||||
Net cash provided by /(used in) financing activities
|
|
7,381
|
|
|
145,022
|
|
|
106,335
|
|
|
18,456
|
|
|
—
|
|
|
(36,322
|
)
|
Consolidated Balance Sheet Data
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014 (a)
|
||||||||||
Current Assets
|
|
$
|
118,474
|
|
|
$
|
105,223
|
|
|
$
|
104,265
|
|
|
$
|
41,025
|
|
|
$
|
76,591
|
|
Total Assets
|
|
846,209
|
|
|
808,350
|
|
|
686,382
|
|
|
786,603
|
|
|
913,877
|
|
|||||
Total Liabilities
|
|
366,603
|
|
|
347,185
|
|
|
285,899
|
|
|
268,259
|
|
|
249,786
|
|
|||||
Current Portion of Long-term Debt (b)
|
|
29,176
|
|
|
4,000
|
|
|
—
|
|
|
15,625
|
|
|
15,625
|
|
|||||
Long-term Debt
|
|
301,583
|
|
|
313,684
|
|
|
255,944
|
|
|
225,577
|
|
|
203,556
|
|
|||||
Stockholders' Equity (c)
|
|
479,606
|
|
|
461,165
|
|
|
400,483
|
|
|
518,344
|
|
|
664,091
|
|
|||||
Other Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Vessels and vessel improvements
|
|
$
|
43,444
|
|
|
$
|
176,603
|
|
|
$
|
21,787
|
|
|
$
|
1,747
|
|
|
$
|
486
|
|
Cash paid for scrubbers, ballast water systems and other
|
|
$
|
12,342
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Drydocking costs incurred
|
|
$
|
8,323
|
|
|
$
|
2,579
|
|
|
$
|
3,689
|
|
|
$
|
11,142
|
|
|
$
|
5,764
|
|
Ratio of Total Debt to Total Capitalization (d)
|
|
40.8
|
%
|
|
40.8
|
%
|
|
39.0
|
%
|
|
31.8
|
%
|
|
24.8
|
%
|
|||||
Fleet Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of Vessels in owned fleet
|
|
47
|
|
|
47
|
|
|
41
|
|
|
44
|
|
|
45
|
|
|||||
Average Age of Fleet
|
|
9.0
|
|
|
8.2
|
|
|
8.7
|
|
|
8.4
|
|
|
8.0
|
|
|||||
Fleet Ownership Days
|
|
17,213
|
|
|
16,293
|
|
|
15,408
|
|
|
16,186
|
|
|
16,425
|
|
|||||
Charter-in under operating lease Days
|
|
3,294
|
|
|
3,353
|
|
|
1,494
|
|
|
382
|
|
|
91
|
|
|||||
Fleet Available Days
|
|
20,083
|
|
|
19,245
|
|
|
16,695
|
|
|
16,151
|
|
|
16,325
|
|
|||||
Fleet Operating Days
|
|
19,921
|
|
|
19,140
|
|
|
16,485
|
|
|
15,766
|
|
|
15,988
|
|
|||||
Fleet Utilization
|
|
99.2
|
%
|
|
99.5
|
%
|
|
98.8
|
%
|
|
97.6
|
%
|
|
97.9
|
%
|
(a)
|
The consolidated and other financial data for the year ended December 31, 2014 presents the results of operations for the period from October 16, 2014 to December 31, 2014 (Successor) and the period from January 1, 2014 to October 15, 2014 (Predecessor). The period from October 16, 2014 to December 31, 2014 (Successor) and the period from January 1, 2014 to October 15, 2014 (Predecessor) are distinct reporting periods because of our emergence from bankruptcy on October 15, 2014. As result of the bankruptcy, our capital structure, our financial statements and share and per share amounts are not comparable between the Successor and Predecessor.
|
(b)
|
The amount of $29.2 million is based on our existing debt as of December 31, 2018 - Norwegian Bond Debt, Original Ultraco Debt Facility and New First Lien Facility. The Original Ultraco Debt Facility and New First Lien Facility were refinanced on January 25, 2019 with the New Ultraco Debt Facility.
|
(c)
|
Effective August 5, 2016, the Company completed a 1 for 20 reverse stock split of its issued and outstanding shares of common stock, par value $0.01 per share (the “Reverse Stock Split”), pursuant to which proportional adjustments were made to the Company’s issued and outstanding common stock and to its common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the Reverse Stock Split as well as the applicable exercise price. In addition, proportional adjustments were made to the number of shares of common stock issuable upon exercise of outstanding warrants and to the exercise price of such warrants, pursuant to the terms thereof. No fractional shares were issued in connection with the Reverse Stock Split, and shareholders who would have received a fractional share of common stock in connection with the Reverse Stock Split instead received a cash payment in lieu of such fractional share. The Company also had 3,040,540 outstanding warrants convertible to 152,027 shares of the Company's common stock which will be recorded as equity upon exercise at an exercise price of $556.40 per share. The warrants have a 7 year term and will expire on October 15, 2021.
|
(d)
|
Ratio of Total Debt to Total Capitalization was calculated as debt divided by capitalization (debt plus stockholders' equity).
|
•
|
On April 17, 2018, the Company sold the vessel Avocet for $9.7 million, after brokerage commissions and associated selling expenses, and recorded a net gain of approximately $0.1 million in its Consolidated Statements of Operations for the year ended December 31, 2018.
|
•
|
During 2018, the Company, through its subsidiary Ultraco, purchased two Ultramax vessels, New London Eagle and Hamburg Eagle for $21.3 million per vessel.
|
•
|
On August 14, 2018, the Company entered into a contract for installation of BWTS on our owned vessels.The projected costs, including installation, is approximately $0.5 million per BWTS. The Company intends to complete the installation during scheduled drydockings in the next three years. The Company recorded $1.0 million in Other assets in the Consolidated Balance Sheet as of December 31, 2018.
|
•
|
On September 4, 2018, the Company announced it had entered into a series of agreements to purchase up to 37 exhaust gas cleaning systems ("Scrubbers") which are to be retrofitted on owned vessels. The Agreements are comprised of firm orders for 19 Scrubbers and up to an additional 18 units, at the Company’s option. On November 20, 2018, the Company announced that it had exercised its option to purchase 15 of the 18 optional Scrubbers, and on January 23, 2019, the Company announced that it had exercised the remaining 3 options. The projected costs, including installation, is approximately $2.2 million per Scrubber. The Company recorded $16.9 million in Other assets in its Consolidated Balance Sheet as of December 31, 2018. The Company intends to complete the retrofit of a majority of vessels prior to the January 1, 2020, which is the implementation date of the new sulphur emission cap as set forth by the IMO.
|
•
|
On September 10, 2018, the Company sold the vessel Thrush for $10.8 million after brokerage commissions and associated selling expenses. The Company recorded a gain of $0.2 million in its Consolidated Statements of Operations for the year ended December 31, 2018.
|
•
|
On December 13, 2018, the Company signed a memorandum of agreement to sell the vessel Condor for $6.5 million after brokerage commissions and associated selling expenses. The vessel was delivered to the buyers in January 2019. The Company expects to record a gain of approximately $2.2 million in the first quarter of 2019. The Company recorded the carrying amount of the vessel as vessels held for sale as of December 31, 2018.
|
•
|
On December 21, 2018, the Company signed a memorandum of agreement to purchase a 2015 built Ultramax vessel for $20.4 million. As of December 31, 2018, the Company paid a deposit of $2.0 million. The Company took delivery of the vessel, Cape Town Eagle in January 2019.
|
•
|
On January 4, 2019, the Company signed a memorandum of agreement to sell the vessel Merlin for $6.1 million after brokerage commissions and associated selling expenses. The vessel was delivered to the buyers in January 2019. The Company expects to record a gain of approximately $1.9 million in the first quarter of 2019. The Company recorded the carrying amount of the vessel as vessels held for sale as of December 31, 2018.
|
•
|
On April 26, 2016, the Company sold the vessel Peregrine for $2.6 million, after brokerage commissions and associated selling expenses, and recorded a net loss of approximately $0.1 million in the second quarter of 2016. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On June 16, 2016, the Company sold the vessel Falcon for $3.2 million, after brokerage commissions and associated selling expenses, and recorded a net loss of approximately $0.1 million in the second quarter of 2016. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On July 12, 2016, the Company sold the vessel Harrier for $3.2 million, after brokerage commissions, associated selling expenses, and recorded a loss of $0.1 million. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On September 6, 2016, the Company sold the vessel Kittiwake for $4.0 million, after brokerage commission, associated selling expenses, and recorded a net gain of $0.3 million in the third quarter of 2016. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On September 30, 2016, Eagle Bulk Shipco LLC ("Shipco") signed a memorandum of agreement to acquire a 2016 NACKS built Ultramax 61,000 dwt. vessel for $18.8 million. The Company took the delivery of the vessel, the Stamford Eagle, in the fourth quarter of 2016.
|
•
|
On November 14, 2016, the Company, through its subsidiary Shipco, signed a memorandum of agreement to acquire a 2017 built 64,000 dwt SDARI-64 Ultramax drybulk vessel constructed at Chengxi Shipyard Co., Ltd for $17.9 million. The Company took delivery of the vessel, the Singapore Eagle, on January 11, 2017.
|
•
|
On January 6, 2017, the Company sold the vessel Redwing for $5.8 million, after brokerage commissions and associated selling expenses, and recorded a net gain of $0.1 million. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On April 6, 2017, the Company sold the vessel Sparrow for $4.8 million after brokerage commissions and associated selling expenses, and recorded a net gain of $1.8 million. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On July 27, 2017, the Company sold the vessel Woodstar for $7.8 million after brokerage commissions and associated selling expenses and recorded a gain for $0.2 million. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
On November 28, 2017, the Company sold the vessel Wren for $7.6 million after brokerage commissions and associated selling expenses and recorded a gain of $0.03 million. A portion of the proceeds was used towards repayment of the term loan under the First Lien Facility.
|
•
|
Maintain a highly efficient and quality fleet in the drybulk segment.
|
•
|
Maintain a revenue strategy that takes advantage of a rising rate environment and at the same time mitigate risk in a declining rate environment.
|
•
|
Maintain a cost structure that allow us to be competitive in all economic cycles without sacrificing safety and maintenance.
|
•
|
Continue to grow our relationships with our charterers and vendors
|
•
|
Continue to invest in our on-shore operations and development of processes.
|
(1)
|
concentration in one vessel category: Supramax/Ultramax drybulk vessels, which we believe offer certain size, operational and geographical advantages relative to other classes of drybulk vessels, such as Handysize, Panamax and Capesize vessels,
|
(2)
|
An active owner-operator model where we seek to operate our own fleet and develop contractual relationships directly with cargo interests. These relationships and the related cargo contracts have the dual benefit of providing greater operational efficiencies and act as a balance to the Company’s naturally long position to the market. Notwithstanding the focus on voyage chartering, we consistently monitor the drybulk shipping market and, based on market conditions, will consider taking advantage of long-term time charters at higher rates when appropriate.
|
(3)
|
Maintain high quality vessels and improve standards of operation through improved standards and procedures, crew training and repair and maintenance procedures.
|
Vessel
|
|
Year
Built
|
|
Dwt
|
|
Charter
Expiration
|
|
Daily Charter
Hire Rate
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Bittern
|
|
2009
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canary
|
|
2009
|
|
57,809
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Cardinal
|
|
2004
|
|
55,362
|
|
|
Jan 2019
|
|
$
|
7,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Condor
|
|
2001
|
|
50,296
|
|
|
—
|
|
$
|
—
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Crane
|
|
2010
|
|
57,809
|
|
|
—
|
|
$
|
—
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Crested Eagle
|
|
2009
|
|
55,989
|
|
|
Jan 2019
|
|
$
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Crowned Eagle
|
|
2008
|
|
55,940
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Egret Bulker
|
|
2010
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
12,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fairfield Eagle
|
|
2013
|
|
63,301
|
|
|
Jan 2019
|
|
$
|
12,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gannet Bulker
|
|
2010
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
4,500
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Golden Eagle
|
|
2010
|
|
55,989
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Goldeneye
|
|
2002
|
|
52,421
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Grebe Bulker
|
|
2010
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
8,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Greenwich Eagle
|
|
2013
|
|
63,301
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Groton Eagle
|
|
2013
|
|
63,301
|
|
|
Jun 2019
|
|
$
|
10,250
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hamburg Eagle
|
|
2014
|
|
63,334
|
|
|
Feb 2019
|
|
$
|
2,707
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hawk I
|
|
2001
|
|
50,296
|
|
|
Feb 2019
|
|
$
|
14,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Ibis Bulker
|
|
2010
|
|
57,809
|
|
|
Feb 2019
|
|
$
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Imperial Eagle
|
|
2010
|
|
55,989
|
|
|
Jan 2019
|
|
$
|
21,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Jaeger
|
|
2004
|
|
52,483
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Jay
|
|
2010
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
13,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Kestrel I
|
|
2004
|
|
50,351
|
|
|
Feb 2019
|
|
$
|
10,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Kingfisher
|
|
2010
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
2,864
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Madison Eagle
|
|
2013
|
|
63,301
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Martin
|
|
2010
|
|
57,809
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Merlin
|
|
2001
|
|
50,296
|
|
|
Jan 2019
|
|
$
|
12,000
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mystic Eagle
|
|
2013
|
|
63,301
|
|
|
Feb 2019
|
|
$
|
13,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New London Eagle
|
|
2015
|
|
63,140
|
|
|
Jan 2019
|
|
$
|
20,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nighthawk
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oriole
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
6,000
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Osprey I
|
|
2002
|
|
50,206
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Owl
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
12,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Petrel Bulker
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
2,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Puffin Bulker
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
16,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Roadrunner Bulker
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Rowayton Eagle
|
|
2013
|
|
63,301
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Sandpiper Bulker
|
|
2011
|
|
57,809
|
|
|
Jan 2019
|
|
$
|
5,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shrike
|
|
2003
|
|
53,343
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Singapore Eagle
|
|
2017
|
|
63,386
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Skua
|
|
2003
|
|
53,350
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Southport Eagle
|
|
2013
|
|
63,301
|
|
|
Jan 2019
|
|
$
|
13,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stamford Eagle
|
|
2016
|
|
61,530
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Stellar Eagle
|
|
2009
|
|
55,989
|
|
|
Mar 2019
|
|
$
|
22,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stonington Eagle
|
|
2012
|
|
63,301
|
|
|
Oct 2019
|
|
$
|
11,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tern
|
|
2003
|
|
50,209
|
|
|
Nov 2019
|
|
$
|
12,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Thrasher
|
|
2010
|
|
53,360
|
|
|
Feb 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Westport Eagle
|
|
2015
|
|
63,344
|
|
|
Jan 2019
|
|
Voyage
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Company signed memorandum of agreements to sell vessels, Condor and Merlin for $6.5 million and $6.1 million, respectively, after brokerage commissions and associated selling expenses. The vessels were delivered to the buyers in January 2019.
|
(2)
|
The vessel is undergoing repairs at a shipyard until end of February 2019.
|
(3)
|
The vessel is contracted to continue the existing time charter at an increased charter rate of $12,000 after January 22, 2019.
|
(4)
|
The vessel is contracted to continue the existing time charter at an increased charter rate of $14,000 after February 1, 2019.
|
(5)
|
The vessel is contracted to continue the existing time charter at an increased charter rate of $12,800 after January 11, 2019.
|
(6)
|
The vessel is contracted to continue the existing time charter at an increased charter rate of $12,000 after January 5, 2019.
|
(7)
|
The vessel is contracted to continue the existing time charter at an increased charter rate of $13,500 after January 4, 2019.
|
|
|||||||||
|
|
|
|
|
|
|
|
||
Vessel Class
|
|
Average estimated daily time charter rate used
|
|
Percentage decline from
average estimated daily
time charter rate used in impairment test at which
point impairment would
be recorded
|
|||||
Supramax
|
|
$
|
12,199
|
|
|
|
(30
|
)%
|
|
|
|
Incremental
number of vessels
|
|
Potential Incremental
Impairment (in millions) |
|||
1 year historical average
|
|
—
|
|
|
—
|
|
|
3 year historical average
|
|
3
|
|
|
$
|
14.7
|
|
5 year historical average
|
|
3
|
|
|
$
|
14.7
|
|
10 year historical average
|
|
—
|
|
|
—
|
|
|
15 year historical average
|
|
—
|
|
|
—
|
|
|
|
Dwt
|
|
Year
Purchased
|
|
Carrying Value*
as of December 31, 2018
|
|
Carrying Value*
as of December 31, 2017 |
Drybulk Vessels
|
|
|
|
|
|
|
|
|
Bittern
|
|
57,809
|
|
2009
|
|
$16.3 million *
|
|
$17.2 million *
|
Canary
|
|
57,809
|
|
2009
|
|
$16.4 million *
|
|
$17.2 million *
|
Cardinal
|
|
55,362
|
|
2005
|
|
$6.7 million
|
|
$7.1 million
|
Crane
|
|
57,809
|
|
2010
|
|
$17.4 million *
|
|
$18.2 million *
|
Crested Eagle
|
|
55,989
|
|
2009
|
|
$19.4 million *
|
|
$20.5 million *
|
Crowned Eagle
|
|
55,940
|
|
2008
|
|
$18.2 million *
|
|
$19.2 million *
|
Egret Bulker
|
|
57,809
|
|
2010
|
|
$17.5 million *
|
|
$18.3 million *
|
Fairfield Eagle
|
|
63,301
|
|
2017
|
|
$16.5 million
|
|
$17.1 million
|
Gannett Bulker
|
|
57,809
|
|
2010
|
|
$17.4 million *
|
|
$18.1 million *
|
Golden Eagle
|
|
55,989
|
|
2010
|
|
$20.6 million *
|
|
$21.8 million *
|
Goldeneye
|
|
52,421
|
|
2008
|
|
$5.0 million
|
|
$5.3 million
|
Grebe Bulker
|
|
57,809
|
|
2010
|
|
$17.2 million *
|
|
$18.1 million *
|
Greenwich Eagle
|
|
63,301
|
|
2017
|
|
$16.3 million
|
|
$16.9 million
|
Groton Eagle
|
|
63,301
|
|
2017
|
|
$16.4 million
|
|
$16.9 million
|
Hamburg Eagle
|
|
63,334
|
|
2014
|
|
$21.2 million
|
|
—
|
Hawk I
|
|
50,296
|
|
2005
|
|
$4.2 million
|
|
$4.4 million
|
Ibis Bulker
|
|
57,809
|
|
2010
|
|
$17.2 million *
|
|
$18.1 million *
|
Imperial Eagle
|
|
55,989
|
|
2010
|
|
$20.7 million *
|
|
$21.8 million *
|
Jaeger
|
|
52,483
|
|
2006
|
|
$6.0 million
|
|
$6.3 million
|
Jay
|
|
57,809
|
|
2010
|
|
$17.3 million *
|
|
$18.1 million *
|
Kestrel I
|
|
50,351
|
|
2006
|
|
$6.1 million
|
|
$6.7 million
|
Kingfisher
|
|
57,809
|
|
2010
|
|
$17.3 million *
|
|
$18.1 million *
|
Madison Eagle
|
|
63,301
|
|
2017
|
|
$16.6 million
|
|
$17.2 million
|
Martin
|
|
57,809
|
|
2010
|
|
$17.3 million *
|
|
$18.1 million *
|
Mystic Eagle
|
|
63,301
|
|
2017
|
|
$16.4 million
|
|
$17.0 million
|
New London Eagle
|
|
63,140
|
|
2018
|
|
$20.9 million
|
|
—
|
Nighthawk
|
|
57,809
|
|
2012
|
|
$18.2 million *
|
|
$19.0 million *
|
Oriole
|
|
57,809
|
|
2012
|
|
$18.2 million *
|
|
$19.1 million *
|
Osprey I
|
|
50,206
|
|
2005
|
|
$4.9 million
|
|
$5.3 million
|
Owl
|
|
57,809
|
|
2012
|
|
$18.2 million *
|
|
$19.1 million *
|
Petrel Bulker
|
|
57,809
|
|
2012
|
|
$18.2 million *
|
|
$19.1 million *
|
Puffin Bulker
|
|
57,809
|
|
2012
|
|
$18.3 million *
|
|
$19.1 million *
|
Roadrunner Bulker
|
|
57,809
|
|
2012
|
|
$18.2 million *
|
|
$19.1 million *
|
Rowayton Eagle
|
|
63,301
|
|
2017
|
|
$16.4 million
|
|
$17.0 million
|
Sandpiper Bulker
|
|
57,809
|
|
2012
|
|
$18.3 million *
|
|
$19.1 million *
|
Shrike
|
|
53,343
|
|
2007
|
|
$6.1 million
|
|
$6.5 million
|
Singapore Eagle
|
|
63,386
|
|
2017
|
|
$17.8 million
|
|
$18.5 million
|
Skua
|
|
53,350
|
|
2007
|
|
$6.1 million
|
|
$6.5 million
|
Southport Eagle
|
|
63,301
|
|
2017
|
|
$16.3 million
|
|
$16.9 million
|
Stamford Eagle
|
|
61,530
|
|
2016
|
|
$17.6 million
|
|
$18.3 million
|
Stellar Eagle
|
|
55,989
|
|
2009
|
|
$19.5 million *
|
|
$20.6 million *
|
Stonington Eagle
|
|
63,301
|
|
2017
|
|
$16.3 million
|
|
$16.9 million
|
Tern
|
|
50,209
|
|
2006
|
|
$5.7 million
|
|
$6.0 million
|
Thrasher
|
|
53,360
|
|
2010
|
|
$8.9 million
|
|
$9.2 million
|
Westport Eagle
|
|
63,344
|
|
2017
|
|
$16.4 million
|
|
$17.0 million
|
|
|
For the Years Ended
|
|||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
|||
Ownership Days
|
|
17,213
|
|
|
16,293
|
|
|
15,408
|
|
Chartered-in Days
|
|
3,294
|
|
|
3,353
|
|
|
1,494
|
|
Available Days
|
|
20,083
|
|
|
19,245
|
|
|
16,695
|
|
Operating Days
|
|
19,921
|
|
|
19,140
|
|
|
16,485
|
|
Fleet Utilization
|
|
99.2
|
%
|
|
99.5
|
%
|
|
98.7
|
%
|
•
|
Ownership days
: We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.
|
•
|
Chartered-in Days
: We define chartered-in days as the aggregate number of days in a period during which the Company chartered-in vessels.
|
•
|
Available days:
We define available days as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, repairs, vessel upgrades or special surveys. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. We drydocked 11 vessels in 2018, three vessels in 2017 and nine vessels in 2016.
|
•
|
Operating days:
We define operating days as the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues
.
|
•
|
Fleet utilization:
We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at very high utilization rates.
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Revenues, net
|
|
$
|
310,094,258
|
|
|
$
|
236,784,625
|
|
|
$
|
124,492,844
|
|
Voyage Expenses
|
|
79,566,452
|
|
|
62,351,252
|
|
|
42,093,714
|
|
|||
Charter hire expenses
|
|
38,045,778
|
|
|
31,283,956
|
|
|
12,845,468
|
|
|||
Net charter hire income
|
|
$
|
192,482,028
|
|
|
$
|
143,149,417
|
|
|
$
|
69,553,662
|
|
|
|
|
|
|
|
|
||||||
% of Net charter hire from
|
|
|
|
|
|
|
||||||
Time charter
|
|
64
|
%
|
|
60
|
%
|
|
64
|
%
|
|||
Voyage charter
|
|
36
|
%
|
|
39
|
%
|
|
35
|
%
|
|||
Commercial pool
|
|
—
|
%
|
|
1
|
%
|
|
1
|
%
|
•
|
the duration of our charters;
|
•
|
our decisions relating to vessel acquisitions and disposals;
|
•
|
the amount of time that we spend positioning our vessels;
|
•
|
the amount of time that our vessels spend in drydock undergoing repairs;
|
•
|
maintenance and upgrade work;
|
•
|
the age, condition and specifications of our vessels;
|
•
|
levels of supply and demand in the drybulk shipping industry; and
|
•
|
other factors affecting spot market charter rates for drybulk carriers.
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
First Lien Facility / Exit Financing Facility Interest *
|
|
$
|
—
|
|
|
$
|
10,305,275
|
|
|
$
|
9,938,822
|
|
Amortization of debt discount and debt issuance costs
|
|
1,913,651
|
|
|
5,927,984
|
|
|
4,532,481
|
|
|||
Payment-in-Kind interest on Second Lien Facility
|
|
—
|
|
|
10,098,401
|
|
|
7,327,843
|
|
|||
Original Ultraco Debt Facility Interest
|
|
3,774,309
|
|
|
1,269,581
|
|
|
—
|
|
|||
Norwegian Bond Debt interest
|
|
16,424,449
|
|
|
1,558,333
|
|
|
—
|
|
|||
New First Lien Facility
|
|
3,509,790
|
|
|
209,420
|
|
|
—
|
|
|||
Super Senior Revolving Credit Facility - commitment fees
|
|
121,332
|
|
|
8,000
|
|
|
—
|
|
|||
Total Interest Expense
|
|
$
|
25,743,531
|
|
|
$
|
29,376,994
|
|
|
$
|
21,799,146
|
|
|
|
|
|
For the Years Ended
|
||||||||||
Derivatives not
designated as hedging
instruments
|
|
Location of (gain)/loss
recognized
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
|
|
|
|
|
|
|
|
|
||||||
FFAs
|
|
Other (income)/expense
|
|
$
|
(471,679
|
)
|
|
$
|
375,672
|
|
|
$
|
561,495
|
|
Bunker Swaps
|
|
Other (income)/expense
|
|
345,438
|
|
|
(413,577
|
)
|
|
—
|
|
|||
Total
|
|
|
|
$
|
(126,241
|
)
|
|
$
|
(37,905
|
)
|
|
$
|
561,495
|
|
Derivatives not designated as hedging instruments
|
Balance Sheet location
|
|
For the Years Ended
|
||||||
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
FFAs - Unrealized loss
|
Fair value of Derivatives
|
|
$
|
—
|
|
|
$
|
73,170
|
|
Bunker Swaps - Unrealized loss
|
Fair value of Derivatives
|
|
929,313
|
|
|
—
|
|
||
FFAs - Unrealized gain
|
Other current assets
|
|
669,240
|
|
|
—
|
|
||
Bunker Swaps - Unrealized gain
|
Other current assets
|
|
—
|
|
|
128,845
|
|
|
|
For the Years Ended
|
||||||||||
(in thousands of U.S. dollars)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Net cash provided by/(used in) operating activities
|
|
$
|
45,470
|
|
|
$
|
(10,037
|
)
|
|
$
|
(45,434
|
)
|
Net cash used in investing activities
|
|
(31,014
|
)
|
|
(155,250
|
)
|
|
(9,347
|
)
|
|||
Net cash provided by financing activities
|
|
7,381
|
|
|
145,022
|
|
|
106,335
|
|
|||
|
|
|
|
|
|
|
||||||
Increase/(Decrease) in cash and cash equivalents
|
|
21,838
|
|
|
(20,265
|
)
|
|
51,554
|
|
|||
Cash, cash equivalents including restricted cash, beginning of year
|
|
56,326
|
|
|
76,591
|
|
|
25,037
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents including restricted cash, end of year
|
|
$
|
78,164
|
|
|
$
|
56,326
|
|
|
$
|
76,591
|
|
Contractual Obligation
|
Payment Due by Period
|
||||||||||||||||||||
(in thousands of dollars)
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
2024 +
|
|
Total
|
|||||||||||
Bank Loans(1)
|
|
$
|
21,176
|
|
|
$
|
33,882
|
|
|
$
|
87,542
|
|
|
$
|
—
|
|
|
$
|
142,600
|
|
|
Interest and borrowing fees(1)
|
|
24,828
|
|
|
44,757
|
|
|
19,673
|
|
|
—
|
|
|
89,258
|
|
||||||
Norwegian Bond Debt (1)
|
|
8,000
|
|
|
16,000
|
|
|
172,000
|
|
|
—
|
|
|
196,000
|
|
||||||
Chartering agreement (2,3)
|
|
13,965
|
|
|
17,462
|
|
|
—
|
|
|
—
|
|
|
31,427
|
|
||||||
Office lease
|
|
715
|
|
|
1,436
|
|
|
728
|
|
|
—
|
|
|
2,879
|
|
||||||
Vessel acquisition (4)
|
|
18,360
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,360
|
|
||||||
Vessel Improvements (5)
|
|
65,905
|
|
|
14,547
|
|
|
—
|
|
|
—
|
|
|
80,452
|
|
||||||
Total
|
|
$
|
152,949
|
|
|
$
|
128,084
|
|
|
$
|
279,943
|
|
|
$
|
—
|
|
—
|
|
$
|
560,976
|
|
(1)
|
This table does not take into account obligations incurred under the New Ultraco Debt Facility and the refinancing of the Original Ultraco Debt Facility and the New First Lien Facility that occurred on January 25, 2019. See Note 8. Debt to our consolidated financial statements. Interest is based on LIBOR assumption of 3.21%.
|
(2)
|
Does not include obligations of chartered-in vessels less than one year.
|
(3)
|
Includes charter hire obligations on three chartered-in vessels with daily charter rates ranging between $12,800 to $15,250. Please see Note 10. Commitments and Contingencies to the consolidated financial statements.
|
(4)
|
On December 21, 2018, the Company signed a memorandum of agreement to purchase a 2015 built Ultramax vessel for
$20.4 million
. As of December 31, 2018, the Company paid a deposit of
$2.0 million
. The Company took delivery of the vessel in the first quarter of 2019.
|
(5)
|
This amount includes the Company's projected costs related to the ballast water treatment systems ("BWTS") and 34 Scrubbers. BWTS includes costs for 2 vessels sold in January 2019 and excludes the cost for the three scrubber options declared in January 2019 which amounted to $6.6 million.
|
|
Projected Costs
(2)
(in millions)
|
||||||||
Quarter Ending
|
Off-hire Days
(1)
|
BWTS
|
Scrubbers
|
Drydocks
|
|||||
March 31, 2019
|
87
|
|
$
|
0.9
|
|
22.2
|
|
1.6
|
|
June 30, 2019
|
167
|
|
$
|
2.5
|
|
15.4
|
|
1.8
|
|
September 30, 2019
|
192
|
|
$
|
3.6
|
|
15.3
|
|
3.1
|
|
December 31, 2019
|
246
|
|
$
|
2.8
|
|
13.7
|
|
5.1
|
|
(1) Actual duration of off-hire days will vary based on the age and condition of the vessel, yard schedules and other factors.
|
(2) Actual costs will vary based on various factors, including where the drydockings are actually performed.
|
|
|
Incremental interest expense
|
||||||
|
|
For the year ended
December 31, 2018
|
|
For the year ended
December 31, 2017 |
||||
+200 basis points
|
|
$
|
2,852,000
|
|
|
$
|
2,524,000
|
|
+100 basis points
|
|
1,426,000
|
|
|
1,262,000
|
|
||
-100 basis points
|
|
(1,426,000
|
)
|
|
(1,262,000
|
)
|
|
|
Number of Securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans(excluding securities reflected in column (a))
|
||||
Plan Category
|
|
(a)*
|
|
(b)
|
|
(c)*
|
||||
Equity compensation plans approved by security holders
|
|
2,005,421
|
|
|
$
|
4.85
|
|
|
1,471,709
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
Total
|
|
2,005,421
|
|
|
4.85
|
|
|
1,471,709
|
|
1.
|
Consolidated Financial Statements: See accompanying Index to Consolidated Financial Statements.
|
2.
|
Consolidated Financial Statement Schedule: Financial statement schedules are omitted either due to the absence of conditions under which they are required or because the information required is included in the notes to the Company’s consolidated financial statements.
|
Number
|
Exhibit Title
|
3.1
|
|
3.2
|
|
4.1
|
|
4.2
|
|
4.3
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.7#
|
|
10.8#
|
|
10.9#
|
|
10.10
|
|
10.11
|
10.12
|
|
10.13
|
|
10.14
|
|
10.15
|
|
10.16
|
|
10.17
|
|
10.18
|
|
10.19
|
|
10.20
|
|
10.21
|
|
10.22
|
|
10.24
|
|
10.25
|
|
10.28#
|
|
10.29#
|
|
10.30#
|
|
10.31#
|
10.32
|
|
10.33#
|
|
10.34#
|
|
10.35#
|
|
10.36#
|
|
10.37#
|
|
10.38
|
|
10.39
|
|
10.40
|
|
10.41
|
|
10.42
|
|
10.43
|
|
10.44*
|
10.45
|
|
10.46*
|
|
21.1*
|
|
23.1*
|
|
23.2*
|
|
31.1*
|
|
31.2*
|
|
32.1**
|
|
32.2**
|
|
101.INS*
|
XBRL Instance Document.
|
101.CAL*
|
XBRL Schema Document.
|
101.SCH*
|
XBRL Calculation Linkbase Document.
|
101.DEF*
|
XBRL Definition Linkbase Document.
|
101.LAB*
|
XBRL Labels Linkbase Document.
|
101.PRE*
|
XBRL Presentation Linkbase Document.
|
|
EAGLE BULK SHIPPING INC.
|
|
||
|
|
|
|
|
|
By:
|
/s/ Gary Vogel
|
|
|
|
|
|
|
|
|
|
Name:
|
Gary Vogel
|
|
|
|
Title:
|
Chief Executive Officer
|
|
Name
|
|
Title
|
|
|
|
/s/ Gary Vogel
|
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
Gary Vogel
|
|
|
|
|
|
/s/ Frank De Costanzo
|
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Frank De Costanzo
|
|
|
|
|
|
/s/ Paul M. Leand, Jr.
|
|
Chairman of the Board of Directors
|
Paul M. Leand, Jr.
|
|
|
|
|
|
/s/ Randee E. Day
|
|
Director
|
Randee E. Day
|
|
|
|
|
|
/s/ Justin A. Knowles
|
|
Director
|
Justin A. Knowles
|
|
|
|
|
|
/s/ Bart Veldhuizen
|
|
Director
|
Bart Veldhuizen
|
|
|
|
|
|
/s/ Gary Weston
|
|
Director
|
Gary Weston
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
ASSETS:
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
67,209,753
|
|
|
$
|
56,251,044
|
|
Accounts receivable, net of a reserve of $2,073,616 and $3,501,964, respectively
|
|
19,785,582
|
|
|
17,246,540
|
|
||
Prepaid expenses
|
|
4,635,879
|
|
|
3,010,766
|
|
||
Short-term investment
|
|
—
|
|
|
4,500,000
|
|
||
Inventories
|
|
16,137,785
|
|
|
14,113,079
|
|
||
Vessels held for sale
|
|
8,458,444
|
|
|
9,316,095
|
|
||
Other current assets
|
|
2,246,740
|
|
|
785,027
|
|
||
Total current assets
|
|
118,474,183
|
|
|
105,222,551
|
|
||
Noncurrent assets:
|
|
|
|
|
||||
Vessels and vessel improvements, at cost, net of accumulated depreciation of $124,907,998 and $99,910,416, respectively
|
|
682,944,936
|
|
|
690,236,419
|
|
||
Advance for vessel purchase
|
|
2,040,000
|
|
|
2,201,773
|
|
||
Other fixed assets, net of accumulated depreciation of $547,452 and $343,799, respectively
|
|
692,803
|
|
|
617,343
|
|
||
Restricted cash
|
|
10,953,885
|
|
|
74,917
|
|
||
Deferred financing costs - Super Senior Facility
|
|
285,342
|
|
|
190,000
|
|
||
Deferred drydock costs, net
|
|
12,186,356
|
|
|
9,749,751
|
|
||
Other assets
|
|
18,631,655
|
|
|
57,181
|
|
||
Total noncurrent assets
|
|
727,734,977
|
|
|
703,127,384
|
|
||
Total assets
|
|
$
|
846,209,160
|
|
|
$
|
808,349,935
|
|
LIABILITIES & STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
14,161,169
|
|
|
$
|
7,470,844
|
|
Accrued interest
|
|
1,735,631
|
|
|
1,790,315
|
|
||
Other accrued liabilities
|
|
10,064,017
|
|
|
11,810,366
|
|
||
Fair value of derivatives
|
|
929,313
|
|
|
73,170
|
|
||
Unearned charter hire revenue
|
|
6,926,839
|
|
|
5,678,673
|
|
||
Current portion of long-term debt
|
|
29,176,230
|
|
|
4,000,000
|
|
||
Total current liabilities
|
|
62,993,199
|
|
|
30,823,368
|
|
||
Noncurrent liabilities:
|
|
|
|
|
||||
Norwegian Bond Debt, net of debt discount and debt issuance costs
|
|
182,469,155
|
|
|
189,950,329
|
|
||
New First Lien Facility, net of debt discount and debt issuance costs
|
|
48,189,307
|
|
|
63,758,185
|
|
||
Original Ultraco Debt Facility, net of debt discount and debt issuance costs
|
|
70,924,885
|
|
|
59,975,162
|
|
||
Other liabilities
|
|
208,651
|
|
|
177,846
|
|
||
Fair value below contract value of time charters acquired
|
|
1,818,114
|
|
|
2,500,012
|
|
||
Total noncurrent liabilities
|
|
303,610,112
|
|
|
316,361,534
|
|
||
Total liabilities
|
|
366,603,311
|
|
|
347,184,902
|
|
||
Commitments and contingencies
|
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
|
||||
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued as of December 31, 2018 and 2017
|
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 700,000,000 shares authorized, 71,055,400 and 70,394,307 shares issued and outstanding as of December 31, 2018 and 2017, respectively
|
|
710,555
|
|
|
703,944
|
|
||
Additional paid-in capital
|
|
894,272,533
|
|
|
887,625,902
|
|
||
Accumulated deficit
|
|
(415,377,239
|
)
|
|
(427,164,813
|
)
|
||
Total stockholders' equity
|
|
479,605,849
|
|
|
461,165,033
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
846,209,160
|
|
|
$
|
808,349,935
|
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Revenues, net
|
|
$
|
310,094,258
|
|
|
$
|
236,784,625
|
|
|
$
|
124,492,844
|
|
|
|
|
|
|
|
|
||||||
Voyage expenses
|
|
79,566,452
|
|
|
62,351,252
|
|
|
42,093,714
|
|
|||
Vessel expenses
|
|
81,336,260
|
|
|
78,607,244
|
|
|
74,016,763
|
|
|||
Charter hire expenses
|
|
38,045,778
|
|
|
31,283,956
|
|
|
12,845,468
|
|
|||
Depreciation and amortization
|
|
37,717,462
|
|
|
33,690,686
|
|
|
38,884,322
|
|
|||
General and administrative expenses
|
|
36,156,660
|
|
|
33,126,310
|
|
|
22,905,802
|
|
|||
Restructuring charges
|
|
—
|
|
|
—
|
|
|
5,869,025
|
|
|||
(Gain)/loss on sale of vessels
|
|
(335,160
|
)
|
|
(2,134,767
|
)
|
|
101,860
|
|
|||
Vessel impairment
|
|
—
|
|
|
—
|
|
|
129,027,862
|
|
|||
Total operating expenses
|
|
272,487,452
|
|
|
236,924,681
|
|
|
325,744,816
|
|
|||
|
|
|
|
|
|
|
||||||
Operating income/(loss)
|
|
37,606,806
|
|
|
(140,056
|
)
|
|
(201,251,972
|
)
|
|||
|
|
|
|
|
|
|
||||||
Interest expense
|
|
25,743,531
|
|
|
29,376,994
|
|
|
21,799,146
|
|
|||
Interest income
|
|
(585,168
|
)
|
|
(651,069
|
)
|
|
(215,433
|
)
|
|||
Other (income)/expense
|
|
(126,241
|
)
|
|
(37,905
|
)
|
|
686,750
|
|
|||
Loss on debt extinguishment
|
|
—
|
|
|
14,968,609
|
|
|
—
|
|
|||
Total other expense, net
|
|
25,032,122
|
|
|
43,656,629
|
|
|
22,270,463
|
|
|||
Net income/(loss)
|
|
$
|
12,574,684
|
|
|
$
|
(43,796,685
|
)
|
|
$
|
(223,522,435
|
)
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Basic
|
|
70,665,212
|
|
|
69,182,302
|
|
|
20,565,652
|
|
|||
Diluted
|
|
71,802,173
|
|
|
69,182,302
|
|
|
20,565,652
|
|
|||
|
|
|
|
|
|
|
||||||
Per share amounts:
|
|
|
|
|
|
|
||||||
Basic net income/(loss)
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
Diluted net income/(loss)
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Net income/(loss)
|
|
$
|
12,574,684
|
|
|
$
|
(43,796,685
|
)
|
|
$
|
(223,522,435
|
)
|
|
|
|
|
|
|
|
||||||
Total other comprehensive income/(loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Comprehensive income/(loss)
|
|
$
|
12,574,684
|
|
|
$
|
(43,796,685
|
)
|
|
$
|
(223,522,435
|
)
|
|
|
Common Stock
|
|
Common Stock Amount
|
|
Additional paid-in Capital
|
|
Accumulated Deficit
|
|
Total Stockholders’ Equity
|
|||||||||
Balance at January 1, 2016
|
|
1,883,303
|
|
|
$
|
18,833
|
|
|
$
|
678,171,322
|
|
|
$
|
(159,845,693
|
)
|
|
$
|
518,344,462
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223,522,435
|
)
|
|
(223,522,435
|
)
|
||||
Issuance of shares in connection with Second Lien Loan Agreement
|
|
16,889,828
|
|
|
168,899
|
|
|
17,587,426
|
|
|
—
|
|
|
17,756,325
|
|
||||
Issuance of shares for private placement, net of issuance costs
|
|
29,333,318
|
|
|
293,333
|
|
|
85,407,202
|
|
|
—
|
|
|
85,700,535
|
|
||||
Reverse stock split adjustment *
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuance of shares due to vesting of restricted shares
|
|
410
|
|
|
4
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||
Cash used to settle net share equity awards
|
|
—
|
|
|
—
|
|
|
(2,938
|
)
|
|
—
|
|
|
(2,938
|
)
|
||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
2,206,690
|
|
|
—
|
|
|
2,206,690
|
|
||||
Balance at December 31, 2016
|
|
48,106,827
|
|
|
481,069
|
|
|
783,369,698
|
|
|
(383,368,128
|
)
|
|
400,482,639
|
|
||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,796,685
|
)
|
|
(43,796,685
|
)
|
||||
Issuance of shares for private placement, net of issuance costs
|
|
22,222,223
|
|
|
222,222
|
|
|
95,807,781
|
|
|
—
|
|
|
96,030,003
|
|
||||
Issuance of shares due to vesting of restricted shares
|
|
65,257
|
|
|
653
|
|
|
(653
|
)
|
|
—
|
|
|
—
|
|
||||
Cash used to settle net share equity awards
|
|
—
|
|
|
—
|
|
|
(289,539
|
)
|
|
—
|
|
|
(289,539
|
)
|
||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
8,738,615
|
|
|
—
|
|
|
8,738,615
|
|
||||
Balance at December 31, 2017
|
|
70,394,307
|
|
|
703,944
|
|
|
887,625,902
|
|
|
(427,164,813
|
)
|
|
461,165,033
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,574,684
|
|
|
12,574,684
|
|
||||
Cumulative effect of accounting change **
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(787,110
|
)
|
|
(787,110
|
)
|
||||
Issuance of shares due to vesting of restricted shares and exercise of options, net of cash received
|
|
661,093
|
|
|
6,611
|
|
|
(1,745
|
)
|
|
—
|
|
|
4,866
|
|
||||
Cash used to settle net share equity awards
|
|
—
|
|
|
—
|
|
|
(2,559,104
|
)
|
|
—
|
|
|
(2,559,104
|
)
|
||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
9,207,480
|
|
|
—
|
|
|
9,207,480
|
|
||||
Balance at December 31, 2018
|
|
71,055,400
|
|
|
$
|
710,555
|
|
|
$
|
894,272,533
|
|
|
$
|
(415,377,239
|
)
|
|
$
|
479,605,849
|
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income/(loss)
|
|
$
|
12,574,684
|
|
|
$
|
(43,796,685
|
)
|
|
$
|
(223,522,435
|
)
|
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation
|
|
32,364,359
|
|
|
29,354,017
|
|
|
35,556,911
|
|
|||
Amortization of deferred drydocking costs
|
|
5,353,102
|
|
|
4,336,669
|
|
|
3,327,411
|
|
|||
Amortization of debt discount and debt issuance costs
|
|
1,913,651
|
|
|
5,927,984
|
|
|
4,532,481
|
|
|||
Loss on debt extinguishment
|
|
—
|
|
|
14,968,609
|
|
|
—
|
|
|||
Amortization of fair value below contract value of time charter acquired
|
|
(681,898
|
)
|
|
(716,783
|
)
|
|
(661,253
|
)
|
|||
Payment-in-kind interest on Second Lien Facility
|
|
—
|
|
|
10,098,401
|
|
|
7,327,843
|
|
|||
Cash paid towards Payment-in-kind interest on Second Lien Facility
|
|
—
|
|
|
(17,426,244
|
)
|
|
—
|
|
|||
(Gain)/loss on sale of vessels, net
|
|
(335,160
|
)
|
|
(2,134,767
|
)
|
|
101,860
|
|
|||
Vessel impairment
|
|
—
|
|
|
—
|
|
|
129,027,862
|
|
|||
Net unrealized loss/(gain) on fair value of derivatives
|
|
315,748
|
|
|
(55,675
|
)
|
|
—
|
|
|||
Fees paid on termination of time charter contract
|
|
—
|
|
|
(1,500,000
|
)
|
|
—
|
|
|||
Stock-based compensation expense
|
|
9,207,480
|
|
|
8,738,615
|
|
|
2,206,690
|
|
|||
Drydocking expenditures
|
|
(8,323,191
|
)
|
|
(2,579,111
|
)
|
|
(3,688,711
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Accounts receivable
|
|
(3,465,025
|
)
|
|
(12,156,832
|
)
|
|
1,986,820
|
|
|||
Other current and non-current assets
|
|
(207,234
|
)
|
|
(331,707
|
)
|
|
(26,799
|
)
|
|||
Prepaid expenses
|
|
(1,625,113
|
)
|
|
83,196
|
|
|
138,801
|
|
|||
Inventories
|
|
(2,024,706
|
)
|
|
(3,236,366
|
)
|
|
(5,302,307
|
)
|
|||
Accounts payable
|
|
993,557
|
|
|
335,688
|
|
|
(1,081,317
|
)
|
|||
Accrued interest
|
|
(54,684
|
)
|
|
1,761,443
|
|
|
(372,360
|
)
|
|||
Other accrued and non-current liabilities
|
|
(1,125,638
|
)
|
|
(1,340,366
|
)
|
|
528,563
|
|
|||
Unearned revenue
|
|
590,531
|
|
|
(367,359
|
)
|
|
4,485,630
|
|
|||
Net cash provided by/(used in) operating activities
|
|
45,470,463
|
|
|
(10,037,273
|
)
|
|
(45,434,310
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Purchase of vessels and vessel improvements
|
|
(41,404,328
|
)
|
|
(174,400,746
|
)
|
|
(19,860,401
|
)
|
|||
Advance for vessel purchase
|
|
(2,040,000
|
)
|
|
(2,201,773
|
)
|
|
(1,926,886
|
)
|
|||
Cash paid for scrubbers, ballast water treatment systems and other assets
|
|
(12,342,317
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds/(purchase) of short-term investment
|
|
4,500,000
|
|
|
(4,500,000
|
)
|
|
—
|
|
|||
Proceeds from sale of vessels
|
|
20,545,202
|
|
|
26,042,000
|
|
|
13,001,000
|
|
|||
Purchase of other fixed assets
|
|
(272,067
|
)
|
|
(189,120
|
)
|
|
(560,348
|
)
|
|||
Net cash used in investing activities
|
|
(31,013,510
|
)
|
|
(155,249,639
|
)
|
|
(9,346,635
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Repayment of First Lien Facility
|
|
—
|
|
|
(184,099,000
|
)
|
|
(21,276,000
|
)
|
|||
Repayment of revolver under the First Lien Facility
|
|
—
|
|
|
(25,000,000
|
)
|
|
(30,158,500
|
)
|
|||
Repayment of Second Lien Facility
|
|
—
|
|
|
(60,000,000
|
)
|
|
—
|
|
|||
Proceeds from Revolver Loan facility
|
|
—
|
|
|
—
|
|
|
15,158,500
|
|
|||
Proceeds from Second Lien Facility
|
|
—
|
|
|
—
|
|
|
60,000,000
|
|
|||
Proceeds from common stock placement, net of issuance costs
|
|
—
|
|
|
96,030,003
|
|
|
85,700,535
|
|
|||
Proceeds from the Norwegian Bond Debt, net of discount
|
|
—
|
|
|
198,092,000
|
|
|
—
|
|
|||
Repayment of outstanding bonds under Norwegian Bond Debt
|
|
(4,000,000
|
)
|
|
—
|
|
|
|
||||
Proceeds from the New First Lien Facility
|
|
—
|
|
|
65,000,000
|
|
|
|
||||
Repayment of revolver under New First Lien Facility
|
|
(5,000,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from the Original Ultraco Debt Facility
|
|
21,400,000
|
|
|
61,200,000
|
|
|
—
|
|
|||
Financing costs paid to lenders
|
|
—
|
|
|
(2,025,514
|
)
|
|
—
|
|
|||
Other financing costs
|
|
(2,465,037
|
)
|
|
(3,886,104
|
)
|
|
(3,086,947
|
)
|
|||
Cash received from exercise of stock options
|
|
4,865
|
|
|
—
|
|
|
—
|
|
|||
Cash used to settle net share equity awards
|
|
(2,559,104
|
)
|
|
(289,539
|
)
|
|
(2,938
|
)
|
|||
Net cash provided by financing activities
|
|
7,380,724
|
|
|
145,021,846
|
|
|
106,334,650
|
|
|||
Net increase/(decrease) in cash, cash equivalents and restricted cash
|
|
21,837,677
|
|
|
(20,265,066
|
)
|
|
51,553,705
|
|
Cash, cash equivalents and restricted cash at beginning of year
|
|
56,325,961
|
|
|
76,591,027
|
|
|
25,037,322
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
|
$
|
78,163,638
|
|
|
$
|
56,325,961
|
|
|
$
|
76,591,027
|
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
||||||
Non-cash accruals for Scrubbers and ballast water systems included in Accounts payable and Other accrued liabilities
|
|
$
|
5,801,867
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid during the period for interest excluding payment of accumulated payment-in-kind interest on the Second Lien Facility paid on December 8, 2017 of $17.7 million.
|
|
$
|
23,884,565
|
|
|
$
|
11,589,192
|
|
|
$
|
10,257,766
|
|
(a)
|
Principles of Consolidation:
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions were eliminated upon consolidation.
|
(b)
|
Use of Estimates:
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, residual value of vessels, the useful lives of vessels, the value of stock-based compensation and the fair value of derivatives. Actual results could differ from those estimates.
|
(c)
|
Other Comprehensive income/(loss):
The Company records the fair value of interest rate swaps and foreign currency swaps designated as hedges as an asset or liability on the balance sheet. The effective portion of the swap is recorded in accumulated other comprehensive loss. Historically, the Company also recorded the unrealized gains and losses on its available for sale investments in accumulated other comprehensive loss. The Company did
not
have any swaps or available for sale investments as of
December 31, 2018
and
2017
.
|
(d)
|
Cash, Cash Equivalents and Restricted Cash:
The Company considers liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less at the time of purchase to be cash equivalents. Restricted Cash as of December 31, 2018 was $
11.0 million
related to the proceeds from the sale of vessel Thrush, which were restricted pursuant to the terms under the Norwegian Bond Debt. Please see Note 8 Debt to the consolidated financial statements for additional information. Additionally, the Company also had restricted cash and cash equivalents of
$74,917
for collateralizing a letter of credit as of
December 31, 2018
and
December 31, 2017
, respectively.
|
(e)
|
Accounts Receivable:
Accounts receivable includes receivables from charterers for time and voyage charterers. At each balance sheet date, all potentially uncollectible accounts are assessed for purposes of determining the appropriate provision for doubtful accounts. The Company wrote off
$1.4 million
and
$3.4 million
for the years ended December 31, 2018 and 2017, respectively, related to previously reserved amounts in the allowance for doubtful accounts. The Company did not record any material provisions for doubtful accounts for the years ended December 31, 2018 and 2017.
|
(f)
|
Insurance Claims:
Insurance claims are recorded as incurred and represent the claimable expenses, net of deductibles, incurred through each balance sheet date, which are expected to be recovered from insurance companies.
|
(g)
|
Inventories:
Inventories, which consist of bunkers, are stated at cost which is determined on a first-in, first-out method. Lubes and spares are expensed as incurred.
|
(h)
|
Short-term Investments:
The Company considers liquid investments such as certificate of deposits with an original maturity of greater than three months as investments. As of December 31, 2017, the Company had
$4.5 million
in a certificate of deposit with an original maturity of one year. The certificate of deposit matured in the first quarter of 2018 and is included in cash and cash equivalents as of December 31, 2018.
|
(i)
|
Vessels and vessel improvements, at cost:
Vessels are stated at cost, which consists of the contract price, and other direct costs relating to acquiring and placing the vessels in service. Major vessel improvements are capitalized and depreciated over the remaining useful lives of the vessels. Depreciation is calculated on a straight-line basis over the estimated useful lives of the vessels based on the cost of the vessels reduced by the estimated scrap value of the vessels as discussed below.
|
(j)
|
Vessel lives and Impairment of Long-Lived Assets:
The Company estimates the useful life of the Company's vessels to be from the date of initial delivery from the shipyard to the original owner. The useful lives of the Company's vessels are evaluated to determine if events have occurred which would require modification to their useful lives. In addition, the Company estimates the scrap value of the vessels to be
$300
per light weight ton ("lwt").
|
(k)
|
Accounting for Drydocking Costs:
The Company follows the deferral method of accounting for drydocking costs whereby actual costs incurred are deferred and are amortized on a straight-line basis over the period through the date the next drydocking is required to become due, generally
30 months
if the vessels are
15 years
old or more and
60 months
for the vessels younger than
15 years
. Costs deferred as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements. Certain costs are capitalized during drydocking if they are expenditures that add economic life to the vessel, increase the vessel’s earnings capacity or improve the vessel’s efficiency. Direct costs that are deferred include the shipyard costs, parts, inspection fees, steel, blasting and painting. Expenditures for normal maintenance and repairs, whether incurred as part of the drydocking or not, are expensed as incurred. Unamortized drydocking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels’ sale. Unamortized drydocking costs are written off as drydocking expense if the vessels are drydocked before the expiration of the applicable amortization period.
|
(l)
|
Deferred Financing Costs:
Fees incurred for obtaining new loans or refinancing existing ones are deferred and amortized to interest expense over the life of the related debt using the effective interest method. Unamortized deferred financing costs are written off when the related debt is repaid or refinanced and such amounts are expensed in the period the repayment or refinancing is made. Such amounts are classified as a reduction of the long-term debt balance on the consolidated balance sheets. For our Super Senior Revolver Facility, as
no
amounts have been drawn, deferred financing fees of
$0.3
million and
$0.2
million have been classified as a non-current asset on the Consolidated Balance Sheets as of December 31, 2018 and 2017, respectively.
|
(m)
|
Other fixed assets:
Other fixed assets are stated at cost less accumulated depreciation. Depreciation is based on a straight-line basis over the estimated useful life of the asset. Other fixed assets consist principally of leasehold improvements, computers and software and are depreciated over
three
years.
|
(n)
|
Accounting for Revenues and Expenses
: Revenues generated from time charters and/or revenues generated from profit sharing arrangements are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable.
|
(o)
|
Unearned Charter Hire Revenue:
Unearned charter hire revenue represents cash received from charterers prior to the time such amounts are earned. These amounts are recognized as revenue as services are provided in future periods.
|
(p)
|
Repairs and Maintenance:
All repair and maintenance expenses are expensed as incurred and are recorded in Vessel Expenses.
|
(q)
|
Protection and Indemnity Insurance:
The Company’s Protection and Indemnity Insurance is subject to additional premiums referred to as "back calls" or "supplemental calls" which are accounted for on an accrual basis and are recorded in Vessel Expenses.
|
(r)
|
Earnings Per Share:
Basic earnings per share is computed by dividing the net income or loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the impact of stock options, warrants and restricted stock under the treasury stock method unless their impact is anti-dilutive.
|
(s)
|
Interest Rate Risk Management:
The Company is exposed to the impact of interest rate changes for outstanding debt under the New First Lien Facility and the Original Ultraco Debt Facility. The Company's objective is to manage the impact of interest rate changes on earnings and cash flows of its borrowings. The Company may use interest rate swaps to manage net exposure to interest rate changes related to its borrowings.
|
(t)
|
Federal Taxes:
The Company is a Republic of the Marshall Islands Corporation. For the years ended December 31, 2018 and 2017, the Company believes that its operations qualify for Internal Revenue Code Section 883 exemption and therefore are not subject to United States federal taxes on United States source shipping income. The Company recorded
$0.6 million
in such taxes as component of voyage expenses for the year ended December 31, 2016 which were reversed in the second quarter of 2017 upon the determination that the Company qualified for the Internal Revenue Code Section 883 exemption for 2016.
|
(u)
|
Restructuring charges
: Restructuring charges consist of professional fees for advisors and attorneys who assisted the Company in the debt restructuring relative to the First Lien Facility in
2016
.
|
(
v)
|
Stock-based compensation:
The Company issues stock-based compensation utilizing both stock options and stock grants. Stock-based compensation is measured at the fair value of the award at the date of grant and recognized over the period of vesting on a straight-line basis using the graded vesting method. The grant-date fair value of stock options is estimated using the Black-Scholes option pricing model. Forfeitures are recognized as they occur.
|
|
For the year ended December 31, 2018
|
||
|
|
||
Time charters
|
$
|
140,006,570
|
|
Voyage charters
|
170,087,688
|
|
|
|
$
|
310,094,258
|
|
|
As of December 31, 2018
|
||||||||||
|
As Reported
|
|
Balance without adoption of ASC 606
|
|
Effect of change
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable
|
$
|
19,785,582
|
|
|
$
|
20,771,299
|
|
|
$
|
(985,717
|
)
|
Other current assets
|
2,246,740
|
|
|
1,478,450
|
|
|
768,290
|
|
|||
Liabilities
|
|
|
|
|
|
||||||
Unearned charter hire revenue
|
6,926,839
|
|
|
6,528,275
|
|
|
398,564
|
|
|
For the year ended December 31, 2018
|
||||||||||
|
As Reported
|
|
Balance without adoption of ASC 606
|
|
Effect of change
|
||||||
Revenues, net
|
$
|
310,094,258
|
|
|
$
|
309,894,921
|
|
|
$
|
199,337
|
|
|
|
|
|
|
|
||||||
Voyage expenses
|
79,566,452
|
|
|
79,292,962
|
|
|
273,490
|
|
|||
Charter hire expenses
|
38,045,778
|
|
|
37,957,027
|
|
|
88,751
|
|
|||
|
|
|
|
|
|
||||||
Net income
|
12,574,684
|
|
|
12,737,588
|
|
|
(162,904
|
)
|
|||
|
|
|
|
|
|
||||||
Basic income per share
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Diluted income per share
|
$
|
0.18
|
|
|
$
|
0.18
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
|
Effect of adoption of ASC 606
|
|
January 1, 2018
|
|
||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable
|
$
|
17,246,540
|
|
|
$
|
(925,983
|
)
|
|
$
|
16,320,557
|
|
Other current assets
(1)
|
785,027
|
|
|
796,508
|
|
|
1,581,535
|
|
|||
Liabilities
|
|
|
|
|
|
||||||
Unearned charter hire revenue (2)
|
5,678,673
|
|
|
657,635
|
|
|
6,336,308
|
|
|||
Stockholders' equity
|
|
|
|
|
|
||||||
Accumulated deficit
|
(427,164,813
|
)
|
|
(787,110
|
)
|
|
(427,951,923
|
)
|
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Vessel and vessel improvements at the beginning of the year
|
$
|
690,236,419
|
|
|
$
|
567,592,950
|
|
Advance paid for vessel purchase
|
2,201,773
|
|
|
1,926,886
|
|
||
Purchase of Vessels and vessel improvements
|
41,487,795
|
|
|
174,400,746
|
|
||
Disposal of Vessels
|
(10,354,855
|
)
|
|
(15,218,633
|
)
|
||
Reclassification to vessels held for sale
|
(8,458,444
|
)
|
|
(9,316,095
|
)
|
||
Depreciation Expense
|
(32,167,752
|
)
|
|
(29,149,435
|
)
|
||
Vessels and Vessel Improvements
|
$
|
682,944,936
|
|
|
$
|
690,236,419
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Beginning Balance
|
|
$
|
9,749,751
|
|
|
$
|
11,507,309
|
|
|
$
|
11,146,009
|
|
Drydocking costs
|
|
8,323,191
|
|
|
2,579,111
|
|
|
3,688,711
|
|
|||
Drydock amortization
|
|
(5,353,102
|
)
|
|
(4,336,669
|
)
|
|
(3,327,411
|
)
|
|||
Write-off due to sale of vessels *
|
|
(533,484
|
)
|
|
—
|
|
|
—
|
|
|||
Ending Balance
|
|
$
|
12,186,356
|
|
|
$
|
9,749,751
|
|
|
$
|
11,507,309
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Vessel and voyage expenses
|
|
$
|
4,981,596
|
|
|
$
|
5,373,389
|
|
General and administrative expenses
|
|
4,768,244
|
|
|
6,050,078
|
|
||
Other expenses
|
|
314,177
|
|
|
386,899
|
|
||
Balance
|
|
$
|
10,064,017
|
|
|
$
|
11,810,366
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Norwegian Bond Debt
|
|
$
|
196,000,000
|
|
|
$
|
200,000,000
|
|
Debt discount and debt issuance costs - Norwegian Bond Debt
|
|
(5,530,845
|
)
|
|
(6,049,671
|
)
|
||
Less: Current Portion - Norwegian Bond Debt
|
|
(8,000,000
|
)
|
|
(4,000,000
|
)
|
||
Norwegian Bond Debt, net of debt discount and debt issuance costs
|
|
182,469,155
|
|
|
189,950,329
|
|
||
New First Lien Facility *
|
|
60,000,000
|
|
|
65,000,000
|
|
||
Debt discount and debt issuance costs - New First Lien Facility
|
|
(1,060,693
|
)
|
|
(1,241,815
|
)
|
||
Less: Current Portion - New First Lien Facility
|
|
(10,750,000
|
)
|
|
—
|
|
||
New First Lien Facility, net of debt discount and debt issuance costs
|
|
48,189,307
|
|
|
63,758,185
|
|
||
Original Ultraco Debt Facility
|
|
82,600,000
|
|
|
61,200,000
|
|
||
Debt discount and debt issuance costs - Original Ultraco Debt Facility
|
|
(1,248,885
|
)
|
|
(1,224,838
|
)
|
||
Less: Current Portion - Original Ultraco Debt Facility
|
|
(10,426,230
|
)
|
|
—
|
|
||
Original Ultraco Debt Facility, net of debt discount and debt issuance costs
|
|
70,924,885
|
|
|
59,975,162
|
|
||
Total long-term debt
|
|
$
|
301,583,347
|
|
|
$
|
313,683,676
|
|
Period
|
|
Redemption Price
|
|
First Call Date to, but not including, the Interest Payment Date in November 2020
|
|
104.125
|
%
|
Interest Payment Date in November 2020 to but not including, the Interest Payment Date in May 2021
|
|
103.3
|
%
|
Interest Payment Date in May 2021 to, but not including, the Interest Payment Date in November 2021
|
|
102.475
|
%
|
Interest Payment Date in November 2021 to, but not including, the Interest Payment Date in May 2022
|
|
101.65
|
%
|
Interest Payment Date in May 2022 to, but not including, the Maturity Date
|
|
100
|
%
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
First Lien Facility / Exit Financing Facility interest *
|
|
$
|
—
|
|
|
$
|
10,305,275
|
|
|
$
|
9,938,822
|
|
Amortization of debt discount and debt issuance costs
|
|
1,913,651
|
|
|
5,927,984
|
|
|
4,532,481
|
|
|||
Payment in kind interest on Second Lien Facility
|
|
—
|
|
|
10,098,401
|
|
|
7,327,843
|
|
|||
Original Ultraco Debt Facility interest
|
|
3,774,309
|
|
|
1,269,581
|
|
|
—
|
|
|||
Norwegian Bond Debt interest
|
|
16,424,449
|
|
|
1,558,333
|
|
|
—
|
|
|||
New First Lien Facility interest
|
|
3,509,790
|
|
|
209,420
|
|
|
—
|
|
|||
Commitment fees - Super Senior Revolver Facility
|
|
121,332
|
|
|
8,000
|
|
|
—
|
|
|||
Total Interest Expense
|
|
$
|
25,743,531
|
|
|
$
|
29,376,994
|
|
|
$
|
21,799,146
|
|
|
|
Norwegian Bond Debt
|
|
New First Lien Facility *
|
|
Original Ultraco Debt Facility *
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
2019
|
|
$
|
8,000,000
|
|
|
$
|
10,750,000
|
|
|
$
|
10,426,230
|
|
|
$
|
29,176,230
|
|
2020
|
|
8,000,000
|
|
|
8,600,000
|
|
|
8,340,984
|
|
|
24,940,984
|
|
||||
2021
|
|
8,000,000
|
|
|
8,600,000
|
|
|
8,340,984
|
|
|
24,940,984
|
|
||||
2022
|
|
172,000,000
|
|
|
32,050,000
|
|
|
55,491,802
|
|
|
259,541,802
|
|
||||
|
|
$
|
196,000,000
|
|
|
$
|
60,000,000
|
|
|
$
|
82,600,000
|
|
|
$
|
338,600,000
|
|
|
|
|
|
For the Years Ended
|
||||||||||
Derivatives not designated as hedging instruments
|
|
Location of (gain)/loss recognized
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
FFAs
|
|
Other (income)/expense
|
|
$
|
(471,679
|
)
|
|
$
|
375,672
|
|
|
$
|
561,495
|
|
Bunker swaps
|
|
Other (income)/expense
|
|
345,438
|
|
|
(413,577
|
)
|
|
—
|
|
|||
Total
|
|
$
|
(126,241
|
)
|
|
$
|
(37,905
|
)
|
|
$
|
561,495
|
|
Derivatives not designated as hedging instruments
|
|
Balance Sheet Location
|
|
Fair value of derivatives
|
||||||
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
||
|
|
|
|
|
|
|
||||
FFAs - Unrealized loss
|
|
Fair value of derivatives
|
|
$
|
—
|
|
|
$
|
73,170
|
|
FFAs - Unrealized gain
|
|
Other current assets
|
|
669,240
|
|
|
—
|
|
||
Bunker Swaps - Unrealized loss
|
|
Fair value of derivatives
|
|
929,313
|
|
|
—
|
|
||
Bunker Swaps - Unrealized gain
|
|
Other current assets
|
|
—
|
|
|
128,845
|
|
|
|
|
Fair Value
|
||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
||||||
December 31, 2018
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Cash and cash equivalents (1)
|
$
|
78,163,638
|
|
|
$
|
78,163,638
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
||||||
Norwegian Bond Debt *
|
$
|
190,469,155
|
|
|
$
|
—
|
|
|
$
|
195,040,000
|
|
New First Lien Facility **
|
$
|
58,939,307
|
|
|
$
|
—
|
|
|
$
|
60,000,000
|
|
Original Ultraco Debt Facility **
|
$
|
81,351,115
|
|
|
$
|
—
|
|
|
$
|
82,600,000
|
|
|
|
|
Fair Value
|
||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
||||||
December 31, 2017
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Cash and cash equivalents (1)
|
$
|
56,325,961
|
|
|
$
|
56,325,961
|
|
|
$
|
—
|
|
Short-term investment
|
$
|
4,500,000
|
|
|
$
|
—
|
|
|
$
|
4,500,000
|
|
Liabilities
|
|
|
|
|
|
||||||
Norwegian Bond Debt *
|
$
|
189,950,329
|
|
|
$
|
—
|
|
|
$
|
200,990,000
|
|
New First Lien Facility **
|
$
|
63,758,185
|
|
|
$
|
—
|
|
|
$
|
65,000,000
|
|
Original Ultraco Debt Facility **
|
$
|
59,975,162
|
|
|
$
|
—
|
|
|
$
|
61,200,000
|
|
*
|
The fair value of the bonds is based on the last trade on December 21, 2018 and December 21, 2017 on Bloomberg.com.
|
**
|
The fair value of the New First Lien Facility and the Original Ultraco Debt Facility is based on the required repayment to the lenders if the debt was discharged in full on December 31, 2018 and 2017. The New First Lien Facility and Original Ultraco Debt Facility were fully discharged as part of the refinancing transaction on January 25, 2019. Please see Note 8. Debt to the consolidated financial statements.
|
2019
|
$
|
715
|
|
2020
|
728
|
|
|
2021
|
708
|
|
|
2022
|
483
|
|
|
2023
|
245
|
|
|
Thereafter
|
—
|
|
|
Total
|
$
|
2,879
|
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Net income/(loss)
|
|
$
|
12,574,684
|
|
|
$
|
(43,796,685
|
)
|
|
$
|
(223,522,435
|
)
|
Weighted Average Shares-Basic
|
|
70,665,212
|
|
|
69,182,302
|
|
|
20,565,652
|
|
|||
Dilutive effect of stock options, warrants and restricted stock units
|
|
1,136,961
|
|
|
—
|
|
|
—
|
|
|||
Weighted Average Shares - Diluted
|
|
71,802,173
|
|
|
69,182,302
|
|
|
20,565,652
|
|
|||
Basic income/(loss) per share
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
Diluted income/(loss) per share
|
|
$
|
0.18
|
|
|
$
|
(0.63
|
)
|
|
$
|
(10.87
|
)
|
|
|
Restricted shares
*
|
|
Fair value
on
grant
date
|
|
Aggregate
fair value
(in millions)
|
|
Vesting Terms
|
|||||
Granted on November 7, 2016
|
|
233,863
|
|
|
$
|
4.24
|
|
|
$
|
1.0
|
|
|
100% vesting on third anniversary date
|
Unvested restricted stock outstanding as of December 31, 2018 and 2017
|
|
233,863
|
|
|
$
|
4.24
|
|
|
$
|
1.0
|
|
|
|
|
|
Options**
|
|
Weighted Average Exercise
Price
|
|
Expiration( years)
|
|
Risk free
interest
rate
|
|
Volatility
|
|
Dividend %
|
|
Fair
Value of
Options
on grant
date
|
|
Aggregate
fair value
(in millions)
|
|
Expected Term and vesting conditions
|
||||||||||
Granted on November 7, 2016
|
|
280,000
|
|
|
$
|
4.28
|
|
|
5
|
|
1.10
|
%
|
|
61
|
%
|
|
—
|
%
|
|
$
|
1.91
|
|
|
$
|
0.53
|
|
|
3.75 years and 25% vesting annually over four year term
|
Vested during 2017
|
|
(70,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.13
|
)
|
|
|
|||||||
Unvested options outstanding as of December 31, 2017
|
|
210,000
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.91
|
|
|
$
|
0.40
|
|
|
|
Vested during 2018
|
|
(70,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.13
|
)
|
|
|
|||||||
Unvested options outstanding as of December 31, 2018
|
|
140,000
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
$
|
1.91
|
|
|
$
|
0.27
|
|
|
|
|
|
Restricted shares
|
|
Weighted Average Fair value on grant date
|
|
Aggregate
fair value
(in
millions)
|
|
Vesting Terms
|
|||||
Granted on December 15, 2016 *
|
|
760,056
|
|
|
$
|
5.90
|
|
|
$
|
4.40
|
|
|
100% on September 1, 2018
|
Granted on December 15, 2016 *
|
|
233,869
|
|
|
5.90
|
|
|
1.38
|
|
|
100% on October 14, 2018
|
||
Unvested restricted stock outstanding as of December 31, 2016
|
|
993,925
|
|
|
5.90
|
|
|
5.78
|
|
|
|
||
Issued on March 1, 2017
|
|
429,750
|
|
|
5.47
|
|
|
2.35
|
|
|
33% vesting annually over three year term
|
||
Issued on June 1, 2017
|
|
18,000
|
|
|
4.64
|
|
|
0.08
|
|
|
100% vesting on third anniversary date
|
||
Forfeited during 2017
|
|
(10,750
|
)
|
|
5.47
|
|
|
$
|
(0.06
|
)
|
|
|
|
Unvested restricted stock outstanding as of December 31, 2017
|
|
1,430,925
|
|
|
5.70
|
|
|
8.15
|
|
|
|
||
Issued on January 4, 2018
|
|
948,500
|
|
|
4.71
|
|
|
4.47
|
|
|
33% vesting annually over three year term
|
||
Issued on January 10, 2018
|
|
30,000
|
|
|
4.81
|
|
|
0.10
|
|
|
|
||
Vested on January 10, 2018
|
|
(30,000
|
)
|
|
4.81
|
|
|
(0.10
|
)
|
|
|
||
Net shares vested on March 1, 2018
|
|
(90,711
|
)
|
|
5.47
|
|
|
(0.50
|
)
|
|
|
||
Vested on September 1, 2018
|
|
(408,143
|
)
|
|
5.90
|
|
|
(2.41
|
)
|
|
|
||
Vested on October 14, 2018
|
|
(130,164
|
)
|
|
5.90
|
|
|
(0.77
|
)
|
|
|
||
Forfeitures and cancellations due to settlement of tax liability on vested shares during 2018
|
|
(537,942
|
)
|
|
5.81
|
|
|
(3.13
|
)
|
|
|
||
Unvested restricted stock outstanding as of December 31, 2018
|
|
1,212,465
|
|
|
$
|
4.79
|
|
|
$
|
5.81
|
|
|
|
|
|
Options*
|
|
Weighted AverageExercise
Price
|
|
Expiration (years)
|
|
Risk free
interest rate
|
|
Volatility
|
|
Dividend %
|
|
Fair
Value
of
Options
on grant
date
|
|
Aggregate fair
value
(in millions)
|
|
Expected Term and Vesting conditions
|
||||||||||
Granted on December 15, 2016 **
|
|
1,266,476
|
|
|
$
|
4.28
|
|
|
5
|
|
1.79
|
%
|
|
62
|
%
|
|
—
|
%
|
|
$
|
3.12
|
|
|
$
|
3.96
|
|
|
3.15 years and 25% vesting annually
|
Granted on December 15, 2016 **
|
|
389,695
|
|
|
$
|
4.28
|
|
|
5
|
|
1.79
|
%
|
|
62
|
%
|
|
—
|
%
|
|
$
|
3.14
|
|
|
$
|
1.21
|
|
|
3.15 years and 25% vesting annually
|
Unvested options outstanding as of December 31, 2016
|
|
1,656,171
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5.17
|
|
|
|
|
Issued on March 1, 2017
|
|
337,000
|
|
|
$
|
5.56
|
|
|
5
|
|
1.72
|
%
|
|
63.5
|
%
|
|
—
|
%
|
|
$
|
2.60
|
|
|
$
|
0.90
|
|
|
3.75 years and 25% vesting annually over four year term
|
Issued on June 1, 2017
|
|
18,000
|
|
|
$
|
4.71
|
|
|
5
|
|
1.56
|
%
|
|
64.7
|
%
|
|
—
|
%
|
|
$
|
2.23
|
|
|
$
|
0.04
|
|
|
3.75 years and 25% vesting annually over four year term
|
Vested during 2017
|
|
(828,085
|
)
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
$
|
3.12
|
|
|
$
|
(2.60
|
)
|
|
|
|||
Forfeitures during 2017
|
|
(3,000
|
)
|
|
$
|
5.56
|
|
|
|
|
|
|
|
|
|
|
$
|
2.60
|
|
|
$
|
(0.08
|
)
|
|
|
|||
Unvested options outstanding as of December 31, 2017
|
|
1,180,086
|
|
|
$
|
4.65
|
|
|
|
|
|
|
|
|
|
|
$
|
2.91
|
|
|
$
|
3.43
|
|
|
|
|||
Vested and unexercised during 2018
|
|
(525,501
|
)
|
|
$
|
4.55
|
|
|
|
|
|
|
|
|
|
|
$
|
3.01
|
|
|
$
|
(1.60
|
)
|
|
|
|||
Forfeitures during 2018
|
|
(1,875
|
)
|
|
$
|
5.56
|
|
|
|
|
|
|
|
|
|
|
$
|
2.60
|
|
|
$
|
(0.05
|
)
|
|
|
|||
Exercised during 2018
|
|
(875
|
)
|
|
$
|
5.56
|
|
|
|
|
|
|
|
|
|
|
$
|
2.60
|
|
|
$
|
(0.03
|
)
|
|
|
|||
Unvested options outstanding as of December 31, 2018
|
|
651,835
|
|
|
$
|
4.72
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3.01
|
|
|
|
|
|
For the Years Ended
|
||||||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Stock awards /stock option plans
|
|
$
|
9,207,480
|
|
|
$
|
8,738,615
|
|
|
$
|
2,206,690
|
|
|
|
|
|
|
|
|
||||||
Total stock-based compensation expense
|
|
$
|
9,207,480
|
|
|
$
|
8,738,615
|
|
|
$
|
2,206,690
|
|
|
|
Three Months
ended March 31 |
|
Three Months
ended June 30 |
|
Three Months
ended September 30 |
|
Three Months
ended December 31 |
||||||||
Revenues, net
|
|
$
|
79,370,609
|
|
|
$
|
74,938,700
|
|
|
$
|
69,092,740
|
|
|
$
|
86,692,209
|
|
Total Operating expenses
|
|
73,051,692
|
|
|
65,953,230
|
|
|
60,262,456
|
|
|
73,220,074
|
|
||||
Operating income
|
|
6,318,917
|
|
|
8,985,470
|
|
|
8,830,284
|
|
|
13,472,135
|
|
||||
Net income
|
|
52,745
|
|
|
3,450,767
|
|
|
2,584,822
|
|
|
6,486,350
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic income Per Share
|
|
$
|
0.00
|
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
$
|
0.09
|
|
Diluted income Per Share
|
|
$
|
0.00
|
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
$
|
0.09
|
|
|
|
Three Months
ended
March 31
|
|
Three Months
ended
June
30
|
|
Three Months
ended
September 30
|
|
Three Months ended December 31,
|
||||||||
Revenues, net
|
|
$
|
45,855,057
|
|
|
$
|
53,631,224
|
|
|
$
|
62,710,903
|
|
|
$
|
74,587,441
|
|
Total Operating expenses
|
|
50,361,713
|
|
|
53,938,837
|
|
|
64,624,733
|
|
|
67,999,398
|
|
||||
Operating (loss)/income
|
|
(4,506,656
|
)
|
|
(307,613
|
)
|
|
(1,913,830
|
)
|
|
6,588,043
|
|
||||
Net loss *
|
|
(11,068,448
|
)
|
|
(5,888,466
|
)
|
|
(10,255,346
|
)
|
|
(16,584,425
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic Loss Per Share
|
|
$
|
(0.17
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.24
|
)
|
Diluted Loss Per Share
|
|
$
|
(0.17
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.24
|
)
|
SECTION 1.
|
Amendments to Credit Agreement
. The Credit Agreement is, effective as of the Second Amendment Effective Date, and subject to the satisfaction of the conditions precedent set forth in
Section 4
below, hereby amended as follows:
|
|
|
|
SECTION 2.
|
Incremental Commitments
.
|
SECTION 3.
|
Representations and Warranties
. In order to induce the Incremental Lenders party hereto to enter into this Second Amendment, to make the Loans pursuant hereto and to amend the Credit Agreement in the manner provided herein, each Security Party hereby represents and warrants that:
|
|
|
|
SECTION 4.
|
Conditions of Effectiveness
. The effectiveness of this Second Amendment (including the amendments contained in
Section 1
hereof and agreements contained in
Section 2
hereof) are subject to the satisfaction of the following conditions (the date of satisfaction of such conditions being referred to herein as the “
Second Amendment Effective Date
”):
|
|
|
|
|
|
|
SECTION 5.
|
Effects on Loan Documents
.
|
|
|
|
SECTION 6.
|
Expense Reimbursement and Indemnification
. The Borrower hereby confirms that the expense reimbursement and indemnification provisions set forth in
Section 11.03
of the Credit Agreement as amended by this Second Amendment shall apply to this Second Amendment and the transactions contemplated hereby.
|
SECTION 7.
|
Amendments; Severability
.
|
SECTION 8.
|
Governing Law; Waiver of Jury Trial; Jurisdiction
. THIS SECOND AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECOND AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (including Sections 5-1401 and 5-1402 of the General Obligations Law but otherwise excluding the laws applicable to conflicts or choice of law). The provisions of
Sections 11.09(b)
,
11.09(c)
,
11.09(d)
and
11.10
of the Credit Agreement as amended by this Second Amendment are incorporated herein by reference,
mutatis mutandis
.
|
SECTION 9.
|
Headings
. Section headings in this Second Amendment are included herein for convenience of reference only, are not part of this Second Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Second Amendment.
|
SECTION 10.
|
Counterparts
. This Second Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Christopher J. Chido
Name: Christopher J. Chido Title: Attorney-in-fact |
|
|
|
By:
|
/s/ Christopher J. Chido
Name: Christopher J. Chido Title: Attorney-in-fact |
|
|
|
Incremental Lenders
|
Incremental Commitments
|
ABN AMRO CAPITAL USA LLC
|
$4,266,666.67
|
DVB BANK SE, AMSTERDAM BRANCH
|
$4,266,666.66
|
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
|
$4,266,666.67
|
Vessel
|
IMO Number
|
Build Year
|
Maximum Vessel Borrowing Amount
|
Quarterly Installment Amount
|
M/V Mystic Eagle
|
9575204
|
2013
|
$6,800,000.00
|
$185,611.73
|
M/V Southport Eagle
|
9575228
|
2013
|
$6,800,000.00
|
$180,640.47
|
M/V Stonington Eagle
|
9575151
|
2012
|
$6,000,000.00
|
$178,338.76
|
M/V Greenwich Eagle
|
9575266
|
2013
|
$6,800,000.00
|
$174,444.76
|
M/V Fairfield Eagle
|
9575230
|
2013
|
$6,800,000.00
|
$179,076.48
|
M/V Groton Eagle
|
9575242
|
2013
|
$6,800,000.00
|
$177,488.56
|
Vessel
|
IMO Number
|
Build Year
|
Maximum Vessel Borrowing Amount
|
Quarterly Installment Amount
|
M/V Westport Eagle
|
9705988
|
2015
|
$7,600,000.00
|
$171,446.23
|
M/V Madison Eagle
|
9575278
|
2013
|
$6,800,000.00
|
$172,937.57
|
M/V Rowayton Eagle
|
9575216
|
2013
|
$6,800,000.00
|
$182,285.55
|
Vessel
|
IMO Number
|
Build Year
|
Maximum Vessel Borrowing Amount
|
Quarterly Installment Amount
|
M/V New London Eagle
|
9754991
|
2015
|
$8,600,000
|
$185,301.06
|
M/V Hamburg Eagle
|
9698587
|
2014
|
$12,800,000
|
$297,674.72
|
1.01
|
Defined Terms 1
|
1.02
|
Terms Generally 30
|
1.03
|
Accounting Terms; Changes in GAAP 31
|
1.04
|
Rates 31
|
2.01
|
Commitments 31
|
2.02
|
Loans and Borrowings. 32
|
2.03
|
Borrowing Requests 32
|
2.04
|
Funding of Borrowings 32
|
2.05
|
Interest Periods 33
|
2.06
|
Repayment 33
|
2.07
|
Prepayments 34
|
2.08
|
Cancellation of Commitments 36
|
2.09
|
Interest 36
|
2.10
|
Fees 37
|
2.11
|
Evidence of Debt 37
|
2.12
|
Payments Generally; Several Obligations of Lenders and Swap Banks 37
|
2.13
|
Sharing of Payments 38
|
2.14
|
Compensation for Losses 39
|
2.15
|
Increased Costs 39
|
2.16
|
Taxes 40
|
2.17
|
Inability to Determine Rates; LIBOR Replacement 43
|
2.18
|
Illegality 46
|
2.19
|
Mitigation Obligations; Replacement of Lenders 46
|
2.20
|
Defaulting Lenders 47
|
2.21
|
Increases in Term Facility Commitments 48
|
3.01
|
Existence, Qualification and Power 50
|
3.02
|
Authorization; No Contravention 50
|
3.03
|
Governmental Authorization; Other Consents 50
|
3.04
|
Execution and Delivery; Binding Effect 51
|
3.05
|
Financial Statements; No Material Adverse Effect 51
|
3.06
|
Litigation 51
|
3.07
|
No Material Adverse Effect; No Default 51
|
3.08
|
Property 51
|
3.09
|
Taxes 52
|
3.10
|
Disclosure 53
|
3.11
|
Compliance with Laws 53
|
3.12
|
ERISA Compliance 53
|
3.13
|
Environmental Matters 54
|
3.14
|
Margin Regulations 54
|
3.15
|
Investment Company, Public Utility 54
|
3.16
|
PATRIOT Act; Sanctions; Anti-Corruption; Anti-Money-Laundering 54
|
3.17
|
ISM Code, ISPS Code and MARPOL Compliance 55
|
3.18
|
Solvency 55
|
3.19
|
Place of Business 55
|
3.20
|
Ownership 56
|
3.21
|
Vessels 56
|
3.22
|
The Security Documents 56
|
3.23
|
Use of Proceeds 57
|
3.24
|
Beneficial Ownership Certification 57
|
3.25
|
No Immunity 57
|
4.01
|
Conditions Precedent to the Closing Date 57
|
4.02
|
Conditions Precedent to Each Borrowing 59
|
4.03
|
Conditions Precedent to Each Borrowing for Each Vessel 60
|
5.01
|
Financial Statements 62
|
5.02
|
Certificates; Other Information 63
|
5.03
|
Vessel Valuations 64
|
5.04
|
Vessel Value Maintenance 64
|
5.05
|
Notices 64
|
5.06
|
Preservation of Existence, Etc. 65
|
5.07
|
[Intentionally Omitted] 65
|
5.08
|
Maintenance of Properties 65
|
5.09
|
Insurances 65
|
5.10
|
Insurance Documentation; Letters of Undertaking; Certificates 67
|
5.11
|
Mortgagee’s Insurance 68
|
5.12
|
Maintenance of Security Interests 68
|
5.13
|
Earnings Payments 68
|
5.14
|
Payment of Obligations 68
|
5.15
|
Vessel Registration 68
|
5.16
|
Vessel Repair 68
|
5.17
|
Classification Society Instructions and Undertakings 68
|
5.18
|
Charters; Charter Assignments; Assignments of Earnings 69
|
5.19
|
Compliance with Laws 69
|
5.20
|
[Intentionally Omitted] 69
|
5.21
|
Environmental Matters 69
|
5.22
|
Books and Records 69
|
5.23
|
Inspection Rights 69
|
5.24
|
Surveys 70
|
5.25
|
Notice of Mortgage 70
|
5.26
|
Green Passport 70
|
5.27
|
[Intentionally Omitted]. 70
|
5.28
|
Prevention of and Release from Arrest 70
|
5.29
|
Use of Proceeds 70
|
5.30
|
Subordination of Loans 70
|
5.31
|
Anti-Corruption Laws 71
|
5.32
|
“Know Your Customer” Documentation 71
|
5.33
|
Asset Control 71
|
5.34
|
Scrapping 71
|
5.35
|
Sanctions 71
|
5.36
|
Treasury Transactions 71
|
6.01
|
Indebtedness 72
|
6.02
|
Liens 72
|
6.03
|
Fundamental Changes 73
|
6.04
|
Restricted Payments 73
|
6.05
|
Investments 73
|
6.06
|
Transactions with Affiliates 73
|
6.07
|
Changes in Fiscal Periods 74
|
6.08
|
Changes in Nature of Business 74
|
6.09
|
Changes in Name; Organizational Documents Amendments 74
|
6.10
|
Place of Business 74
|
6.11
|
Change of Control; Negative Pledge 74
|
6.12
|
Restriction on Chartering 74
|
6.13
|
Lawful Use 74
|
6.14
|
Approved Manager 75
|
6.15
|
Insurances 75
|
6.16
|
Modification; Removal of Parts 75
|
6.17
|
Sanctions 75
|
6.18
|
No Financial Support to the Restricted Subsidiary 76
|
7.01
|
Financial Covenants 76
|
8.01
|
Guaranty 77
|
8.02
|
Obligations Unconditional 78
|
8.03
|
Reinstatement 78
|
8.04
|
Subrogation; Subordination 79
|
8.05
|
Remedies 79
|
8.06
|
Instrument for the Payment of Money 79
|
8.07
|
Continuing Guarantee 79
|
8.08
|
General Limitation on Guarantee Obligations 79
|
8.09
|
Right of Contribution 79
|
8.10
|
Set-off 79
|
8.11
|
Keepwell 80
|
8.12
|
Parallel Liability. 80
|
9.01
|
Events of Default 81
|
9.02
|
Application of Payments 83
|
10.01
|
Appointment and Authority 84
|
10.02
|
Rights as a Lender 85
|
10.03
|
Exculpatory Provisions 85
|
10.04
|
Reliance by Agent 86
|
10.05
|
Delegation of Duties 87
|
10.06
|
Resignation of Agent 87
|
10.07
|
Non-Reliance on Agents and Other Lenders 88
|
10.08
|
No Other Duties 88
|
10.09
|
Facility Agent May File Proofs of Claim 88
|
10.10
|
Collateral and Guaranty Matters 89
|
11.01
|
Notices 89
|
11.02
|
Waivers; Amendments 91
|
11.03
|
Expenses; Indemnity; Damage Waiver 93
|
11.04
|
Successors and Assigns 94
|
11.05
|
Survival 97
|
11.06
|
Counterparts; Integration; Effectiveness; Electronic Execution 97
|
11.07
|
Severability 98
|
11.08
|
Right of Setoff 98
|
11.09
|
Governing Law; Jurisdiction; Etc. 98
|
11.10
|
WAIVER OF JURY TRIAL 99
|
11.11
|
Headings 99
|
11.12
|
Treatment of Certain Information; Confidentiality 99
|
11.13
|
PATRIOT Act 100
|
11.14
|
Interest Rate Limitation 100
|
11.15
|
Payments Set Aside 101
|
11.16
|
No Advisory or Fiduciary Responsibility 101
|
11.17
|
Acknowledgement and Consent to Bail-In of EEA Financial Institutions 101
|
EXHIBIT A
|
– Form of Account Pledge
|
EXHIBIT B
|
– Form of Assignment and Assumption
|
EXHIBIT C
|
– Form of Assignment of Earnings
|
EXHIBIT D
|
– Form of Assignment of Insurances
|
EXHIBIT E
|
– Form of Borrowing Request
|
EXHIBIT F
|
– Form of Charter Assignment
|
EXHIBIT G
|
– Form of Guarantor Accession Agreement
|
EXHIBIT H
|
– Form of Manager’s Undertaking
|
EXHIBIT I
|
– Form of Master Agreement Assignment
|
EXHIBIT J
|
– Form of Membership Interest Pledge
|
EXHIBIT K
|
– Form of Vessel Mortgage
|
EXHIBIT L
|
– Form of Note
|
EXHIBIT M-1
|
– Form of U.S. Tax Compliance Certificate
|
EXHIBIT M-2
|
– Form of U.S. Tax Compliance Certificate
|
EXHIBIT M-3
|
– Form of U.S. Tax Compliance Certificate
|
EXHIBIT M-4
|
– Form of U.S. Tax Compliance Certificate
|
By
/s/ Gary Vogel
|
Name: Gary Vogel Title: Chief Executive Officer |
By
/s/ Gary Vogel
|
Name: Gary Vogel Title: Chief Executive Officer |
GANNET SHIPPING LLC
,
|
JAY SHIPPING
LLC
,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
GOLDEN EAGLE SHIPPING LLC
,
|
KINGFISHER SHIPPING
LLC
,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
GREBE SHIPPING LLC
,
|
MARTIN SHIPPING LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
IBIS SHIPPING LLC
,
|
NIGHTHAWK SHIPPING LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
IMPERIAL EAGLE SHIPPING
LLC
,
|
CAPE TOWN EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
FAIRFIELD EAGLE
LLC
,
|
ROWAYTON EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
MYSTIC EAGLE
LLC
,
|
MADISON EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
SOUTHPORT EAGLE
LLC
,
|
WESTPORT EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
STONINGTON EAGLE
LLC
,
|
GREENWICH EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
GROTON EAGLE
LLC
,
|
NEW LONDON EAGLE LLC,
|
as Guarantor
|
as Guarantor
|
By
/s/ Andrea Jansz
|
By_
/s/ Andrea Jansz
|
By
/s/ Nicholas Santangelo
|
Name: Nicholas Santangelo Title: Attorney-in-Fact |
By
/s/ Manon Didler
|
Name:Manon Didler Title: Senior Associate |
By
/s/ Alexander Foley
|
Name:Alexander Foley Title: Senior Associate |
By
/s/ Per Barre
|
Name:Per Barre Title: Vice President |
By
/s/ Tom Racanell
|
Name: Tom Racanell Title: SVP |
By
/s/ Michael Markowitz
|
Name: Michael Markowitz Title: First Vice President & Assistant General Counsel |
By
/s/ Alexander Bolann
|
Name: Alexander Bolann Title: First Vice President |
By
/s/ Nicholas Santangelo
|
Name: Nicholas Santangelo Title: Attorney-in-Fact |
By
/s/ Nicholas Santangelo
|
Name: Nicholas Santangelo Title: Attorney-in-Fact |
By
/s/ Nicholas Santangelo
|
Name: Nicholas Santangelo Title: Attorney-in-Fact |
By
/s/ Michael Markowitz
|
Name: Michael Markowitz Title: First Vice President & Assistant General Counsel |
By
/s/ Alexander Bolann
|
Name: Alexander Bolann Title: First Vice President |
By
/s/ Manon Didler
|
Name: Manon Didler Title: Senior Associate |
By
/s/ Alexander Foley
|
Name: Alexander Foley Title: Senior Associate |
By
/s/ Per Barre
|
Name:Per Barre Title: Vice President |
By
/s/ Tom Racanell
|
Name: Tom Racanell Title: SVP |
By
/s/ Nicholas Santangelo
|
Name: Nicholas Santangelo Title: Attorney-in-Fact |
By
/s/ Manon Didler
|
Name: Manon Didler Title: Senior Associate |
By
/s/ Alexander Foley
|
Name: Alexander Foley Title: Senior Associate |
By
/s/ Per Barre
|
Name:Per Barre Title: Vice President |
By
/s/ Tom Racanell
|
Name: Tom Racanell Title: SVP |
By
/s/ Tor Ivar Hanson
|
Name: Tor Ivar Hanson Title: Managing Director |
By
/s/ Emilio Fabbrizzi
|
Name: Emilio Fabbrizzi Title: Managing Director |
LENDERS
|
TERM FACILITY COMMITMENTS
|
REVOLVING FACILITY COMMITMENTS
|
ABN AMRO CAPITAL USA LLC
Address for Notices
:
ABN AMRO Capital USA LLC
100 Park Avenue, 17th floor
New York, NY 10017
with a copy to:
Wudasse Zaudou
ABN AMRO Capital USA LLC
100 Park Avenue, 17th floor
New York, NY 10017
Telephone: +917-284-6697
Email: wudasse.zaudou@abnamro.com
Lending Office
:
ABN AMRO Capital USA LLC
100 Park Avenue, 17th floor
New York, NY 10017
|
$29,523,809.52
|
$10,476,190.48
|
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
Address for Notices
:
Asset Finance Groups – Ship Finance
12 Place des Etats-Unis
CS 70052
92547 Montrouge Cedex, France
Attn : Agency and Middle-Office for Shipping
Telephone: +33 1 41892079 / +33 1 41898696
Email: clementine.costil@ca-cib.com / rosine.serra-joannides@ca-cib.com
Crédit Agricole Corporate and Investment Bank
1301 Avenue of the Americas
New York, New York 10019
United States
Attn: Jerome Duval / Manon Didier
Telephone: +1 212 261 4039 / +1 212 261 7363
Email: Jerome.duval@ca-cib.com / manon.didier@ca-cib.com /
NYShipFinance@ca-cib.com
Lending Office
:
Asset Finance Groups – Ship Finance
12 Place des Etats-Unis
CS 70052
92547 Montrouge Cedex, France
|
$29,523,809.52
|
$10,476,190.48
|
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
Address for Notices
:
Skandinaviska Enskilda Banken AB (publ)
Structured Credit Operations
Rissneleden 110
SE-106 40 Stockholm
Sweden
Lending Office
:
Skandinaviska Enskilda Banken AB (publ)
Structured Credit Operations
Rissneleden 110
SE-106 40 Stockholm
Sweden
|
$29,523,809.52
|
$10,476,190.48
|
NORDEA BANK ABP, NEW YORK BRANCH
Address for Notices
:
1211 Avenue of the Americas, New York, NY 10036
Henning Lyche Christiansen +1 212 318 9632 henning.christiansen@nordea.com
Lending Office
:
1211 Avenue of the Americas, New York, NY 10036
Henning Lyche Christiansen +1 212 318 9632 henning.christiansen@nordea.com |
$18,452,380.96
|
$6,547,619.04
|
TOTAL
|
$155,000,000
|
$55,000,000
|
|
ABN AMRO BANK N.V.
Address for Notices
:
ABN AMRO Bank N.V.
Daalsesingel 71
3511 SW Utrecht
The Netherlands
with a copy to:
Wudasse Zaudou
ABN AMRO Capital USA LLC
100 Park Avenue, 17th floor
New York, NY 10017
Telephone: +917-284-6697
Email: wudasse.zaudou@abnamro.com
|
NORDEA BANK ABP
Address for Notices
:
c/o Nordea Danmark, filial af Nordea Bank Abp,
Finland
7288 Derivatives Services
Postbox 850
DK-0900 Copenhagen K, Denmark |
DNB BANK ASA, NEW YORK BRANCH
Address for Notices
:
Address for Notices
:
DNB Bank ASA
200 Park Avenue | 31st Floor | New York | NY 10166
with a copy to:
Sybille Andaur / Samantha Stone / Michael Davidowsky
DNB Bank ASA
200 Park Avenue | 31st Floor | New York | NY 10166
Sybille Andaur (Sybille.andaur@dnb.no) / Samantha Stone (samantha.stone@dnb.no & agencyny@dnb.no) / Michael Davidowsky
|
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
Address for Notices
:
1301 Avenue of the Americas
New York, NY, 10019
USA
Tel: +1 212.261.7562
Fax: +1 212.261.3699
Attn: Daniel Hansen - Corporate Derivative Solutions
Email: daniel.hansen@ca-cib.com / jeffrey.kim@ca-cib.com
|
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
Address for Notices
:
Skandinaviska Enskilda Banken AB (publ)
Structured Credit Operations
Rissneleden 110
SE-106 40 Stockholm
Sweden
|
Guarantor
|
Jurisdiction of Formation
|
Registration Number
(or equivalent, if any)
|
Registered Office
|
GANNET SHIPPING LLC
|
The Republic of the Marshall Islands
|
961584
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
GOLDEN EAGLE SHIPPING LLC
|
The Republic of the Marshall Islands
|
960908
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
GREBE SHIPPING LLC
|
The Republic of the Marshall Islands
|
961585
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
IBIS SHIPPING LLC
|
The Republic of the Marshall Islands
|
961586
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
IMPERIAL EAGLE SHIPPING LLC
|
The Republic of the Marshall Islands
|
960909
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
JAY SHIPPING LLC
|
The Republic of the Marshall Islands
|
961654
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
KINGFISHER SHIPPING LLC
|
The Republic of the Marshall Islands
|
961655
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
MARTIN SHIPPING LLC
|
The Republic of the Marshall Islands
|
961656
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
NIGHTHAWK SHIPPING LLC
|
The Republic of the Marshall Islands
|
961842
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
CAPE TOWN EAGLE
LLC
|
The Republic of the Marshall Islands
|
964456
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
FAIRFIELD EAGLE
LLC
|
The Republic of the Marshall Islands
|
963789
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
MYSTIC EAGLE
LLC
|
The Republic of the Marshall Islands
|
963790
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
SOUTHPORT EAGLE
LLC
|
The Republic of the Marshall Islands
|
963786
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
STONINGTON EAGLE
LLC
|
The Republic of the Marshall Islands
|
963825
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
GROTON EAGLE
LLC
|
The Republic of the Marshall Islands
|
963826
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
ROWAYTON EAGLE
LLC
|
The Republic of the Marshall Islands
|
963788
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
MADISON EAGLE
LLC
|
The Republic of the Marshall Islands
|
963791
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
WESTPORT EAGLE
LLC
|
The Republic of the Marshall Islands
|
963827
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
GREENWICH EAGLE
LLC
|
The Republic of the Marshall Islands
|
963787
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
NEW LONDON EAGLE
LLC
|
The Republic of the Marshall Islands
|
964089
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
HAMBURG EAGLE
LLC
|
The Republic of the Marshall Islands
|
964288
|
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960
|
Vessel
|
Official Number
|
IMO Number
|
Build Year
|
Owner
|
1. GANNET BULKER
|
3902
|
9441300
|
2010
|
Gannet Shipping LLC
|
2. GOLDEN EAGLE
|
3794
|
9418731
|
2010
|
Golden Eagle Shipping LLC
|
3. GREBE BULKER
|
3905
|
9441312
|
2010
|
Grebe Shipping LLC
|
4. IBIS BULKER
|
3946
|
9441324
|
2010
|
Ibis Shipping LLC
|
5. IMPERIAL EAGLE
|
3820
|
9478511
|
2010
|
Imperial Eagle Shipping LLC
|
6. JAY
|
3972
|
9441336
|
2010
|
Jay Shipping LLC
|
7. KINGFISHER
|
3974
|
9441348
|
2010
|
Kingfisher Shipping LLC
|
8. MARTIN
|
3973
|
9441350
|
2010
|
Martin Shipping LLC
|
9. NIGHTHAWK
|
4193
|
9441362
|
2011
|
Nighthawk Shipping LLC
|
10. WESTPORT EAGLE
|
7507
|
9705988
|
2015
|
Westport Eagle LLC
|
11. FAIRFIELD EAGLE
|
7510
|
9575230
|
2013
|
Fairfield Eagle LLC
|
12. GREENWICH EAGLE
|
7449
|
9575266
|
2013
|
Greenwich Eagle LLC
|
13. MADISON EAGLE
|
7509
|
9575278
|
2013
|
Madison Eagle LLC
|
14. MYSTIC EAGLE
|
7405
|
9575204
|
2013
|
Mystic Eagle LLC
|
15. ROWAYTON EAGLE
|
7454
|
9575216
|
2013
|
Rowayton Eagle LLC
|
16. SOUTHPORT EAGLE
|
7406
|
9575228
|
2013
|
Southport Eagle LLC
|
17. GROTON EAGLE
|
7505
|
9575242
|
2013
|
Groton Eagle LLC
|
18. NEW LONDON EAGLE
|
7824
|
9754991
|
2015
|
New London Eagle LLC
|
19. STONINGTON EAGLE
|
7450
|
9575151
|
2012
|
Stonington Eagle LLC
|
20. HAMBURG EAGLE
|
8164
|
9698587
|
2014
|
Hamburg Eagle LLC
|
21. CAPE TOWN EAGLE
|
8273
|
9700134
|
2015
|
Cape Town Eagle LLC
|
1.
|
$150,000 per Vessel per annum for commercial management services inclusive of operations in the first year following the Closing Date, subject to annual increases thereafter, as fairly and reasonably determined by the relevant Upstream Guarantor, at arm’s length and in line with market standards.
|
2.
|
$135,000 per Vessel per annum for technical management in the first year following the Closing Date, subject to annual increases thereafter, as fairly and reasonably determined by the relevant Upstream Guarantor at arm’s length and in line with market standards.
|
3.
|
1.0% fee for any vessel purchase or subsequent sale.
|
Fiscal Quarter After Initial Borrowing Date
|
Term Facility Borrowing
Outstanding
|
Quarterly Repayment Installment
|
0
|
$155,000,000
|
|
1
|
$148,700,000
|
$6,300,000
|
2
|
$142,400,000
|
$6,300,000
|
3
|
$136,100,000
|
$6,300,000
|
4
|
$129,800,000
|
$6,300,000
|
5
|
$123,500,000
|
$6,300,000
|
6
|
$117,200,000
|
$6,300,000
|
7
|
$110,900,000
|
$6,300,000
|
8
|
$104,600,000
|
$6,300,000
|
9
|
$98,300,000
|
$6,300,000
|
10
|
$92,000,000
|
$6,300,000
|
11
|
$85,700,000
|
$6,300,000
|
12
|
$79,400,000
|
$6,300,000
|
13
|
$73,100,000
|
$6,300,000
|
14
|
$66,800,000
|
$6,300,000
|
15
|
$60,500,000
|
$6,300,000
|
16
|
$54,200,000
|
$6,300,000
|
17
|
$47,900,000
|
$6,300,000
|
18
|
$41,600,000
|
$6,300,000
|
19
|
$35,300,000
|
$6,300,000
|
20
|
$29,000,000
|
$6,300,000
|
Fiscal Quarter After Initial Borrowing Date
|
Max Cumulative Amount Payable Under Sweep
|
||
0
|
|
||
1
|
|
$1,200,000
|
|
2
|
|
$2,400,000
|
|
3
|
|
$3,600,000
|
|
4
|
$4,800,000 max
|
|
|
5
|
|
$4,500,000
|
|
6
|
|
$4,200,000
|
|
7
|
|
$3,900,000
|
|
8
|
|
$3,600,000
|
|
9
|
|
$3,300,000
|
|
10
|
|
$3,000,000
|
|
11
|
|
$2,700,000
|
|
12
|
|
$2,400,000
|
|
13
|
|
$2,100,000
|
|
14
|
|
$1,800,000
|
|
15
|
|
$1,500,000
|
|
16
|
|
$1,200,000
|
|
17
|
|
$900,000
|
|
18
|
|
$600,000
|
|
19
|
|
$300,000
|
|
20
|
|
Name of Significant Subsidiary
|
Jurisdiction of Incorporation
|
Eagle Shipping LLC
|
Marshall Islands
|
Eagle Bulk Management LLC
|
Marshall Islands
|
Eagle Shipping International (USA) LLC
|
Marshall Islands
|
Eagle Ship Management LLC
|
Delaware
|
Eagle Management Consultants LLC
|
Delaware
|
Eagle Bulk Pte. Ltd.
|
Singapore
|
Eagle Bulk Holdco LLC
|
Marshall Islands
|
Eagle Bulk Shipco LLC
|
Marshall Islands
|
Eagle Bulk Ultraco LLC
|
Marshall Islands
|
Eagle Bulk Delaware LLC
|
Delaware
|
Eagle Bulk Dynaco LLC
|
Marshall Island
|
Eagle Bulk Europe GmbH
|
Germany
|
Avocet Shipping LLC
|
Marshall Islands
|
Bittern Shipping LLC
|
Marshall Islands
|
Canary Shipping LLC
|
Marshall Islands
|
Cape Town Eagle LLC
|
Marshall Islands
|
Cardinal Shipping LLC
|
Marshall Islands
|
Condor Shipping LLC
|
Marshall Islands
|
Crane Shipping LLC
|
Marshall Islands
|
Crested Eagle Shipping LLC
|
Marshall Islands
|
Crowned Eagle Shipping LLC
|
Marshall Islands
|
Egret Shipping LLC
|
Marshall Islands
|
Fairfield Eagle LLC
|
Marshall Islands
|
Gannet Shipping LLC
|
Marshall Islands
|
Greenwich Eagle LLC
|
Marshall Islands
|
Golden Eagle Shipping LLC
|
Marshall Islands
|
Goldeneye Shipping LLC
|
Marshall Islands
|
Grebe Shipping LLC
|
Marshall Islands
|
Groton Eagle LLC
|
Marshall Islands
|
Hawk Shipping LLC
|
Marshall Islands
|
Hamburg Eagle LLC
|
Marshall Islands
|
Ibis Shipping LLC
|
Marshall Islands
|
Imperial Eagle Shipping LLC
|
Marshall Islands
|
Jaeger Shipping LLC
|
Marshall Islands
|
Jay Shipping LLC
|
Marshall Islands
|
Kestrel Shipping LLC
|
Marshall Islands
|
Kingfisher Shipping LLC
|
Marshall Islands
|
Kittiwake Shipping LLC
|
Marshall Islands
|
Madison Eagle LLC
|
Marshall Islands
|
Martin Shipping LLC
|
Marshall Islands
|
Merlin Shipping LLC
|
Marshall Islands
|
Mystic Eagle LLC
|
Marshall Islands
|
New London Eagle LLC
|
Marshall Islands
|
Nighthawk Shipping LLC
|
Marshall Islands
|
Oriole Shipping LLC
|
Marshall Islands
|
Osprey Shipping LLC
|
Marshall Islands
|
Owl Shipping LLC
|
Marshall Islands
|
Petrel Shipping LLC
|
Marshall Islands
|
Puffin Shipping LLC
|
Marshall Islands
|
Roadrunner Shipping LLC
|
Marshall Islands
|
Rowayton Eagle LLC
|
Marshall Islands
|
Sandpiper Shipping LLC
|
Marshall Islands
|
Singapore Eagle LLC
|
Marshall Islands
|
Shrike Shipping LLC
|
Marshall Islands
|
Skua Shipping LLC
|
Marshall Islands
|
Southport Eagle LLC
|
Marshall Islands
|
Sparrow Shipping LLC
|
Marshall Islands
|
Stamford Eagle LLC
|
Marshall Islands
|
Stellar Eagle Shipping LLC
|
Marshall Islands
|
Stonington Eagle LLC
|
Marshall Islands
|
Tern Shipping LLC
|
Marshall Islands
|
Thrasher Shipping LLC
|
Marshall Islands
|
Thrush Shipping LLC
|
Marshall Islands
|
Woodstar Shipping LLC
|
Marshall Islands
|
Wren Shipping LLC
|
Marshall Islands
|
Westport Eagle LLC
|
Marshall Islands
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|