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Eagle Bulk Shipping (EGLE) +14.1% AH after reaching a debt restructuring deal. $1.13B in debt...

Eagle Bulk Shipping (EGLE) +14.1% AH after reaching a debt restructuring deal. $1.13B in debt outstanding through a revolving credit facility will be turned into a term loan due at the end of 2015, with a possible 18-month extension. Eagle will receive a new $20M credit facility, and all debt outstanding via its current credit agreement will carry an interest rate of LIBOR plus 6%. Creditors will receive warrants convertible into common stock equal to 20% of current outstanding shares. (PR)
Comments (2)
  • alphaman
    , contributor
    Comments (156) | Send Message
     
    I would sell my shares in this company but I am way too late. I did not cut my losses when I should have. I think I should just treat my shares as call options. Any thoughts or comments?
    20 Jun 2012, 10:24 PM Reply Like
  • crappercan
    , contributor
    Comment (1) | Send Message
     
    This info on the restructuring of Eagle's debt have been rumored in the shipping market for some time. I have personally been long since the lows around $2.50 as yday's news was unavoidable. Trust that the recent extreme volatility of the stock has had something to do with same.

     

    On generic note; The market that Eagle operates in around S.E. Asia has swung back into action in recent days and there have been numerous "above market average" fixtures for those owners/operators that had tonnage prompt and available mainly for the Indonesia Coal trade.
    While this would be considered seasonal or temporary regional rally, the main questionis "How long will this last?" as tonnage inevitably chases the cargoes, more and more ships relocate and as available tonnage increases the window for earning good rates starts to close.
    The current going rates for the Indo/India Coal trades for Handy and Supra's is around $12-13K/day.

     

    The impact has already filtered through to the Baltic Dry Index where all of the positive movement in the markets has been for panamax / handymax tonnage.

     

    The good news clearly doesn't extend to the Cape sector though with rates in the doldrums. This week we are seeing US$3,500/day averages so we are perilously close to the post-Lehman collapse lows of US$2,300/day. It seems like a lifetime ago but today 4 years ago you would have had to pay $230,000 per day to fix a Cape. The glut of tonnage in this sector continues to grow and with such massive supply-side expansion it's hardly surprising that most brokers enter the traditional summer lull feeling rather depressed when it comes to anything to do with capes. Hopes of a rebound in Chinese iron ore demand have so far failed to deliver much direction to the market and as we approach July / August most brokers discount the possibility of noiceable gains in this area - largely because the summer months are generally accompanied by a fall off in coal imports to China.
    21 Jun 2012, 01:23 AM Reply Like
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