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Eagle Bulk uses $125 million from revolver to fund stock repurchase
By Mary-Katherine Stinson
Lexington, Ky., June 23 – Eagle Bulk Shipping Inc. elected to draw down $125 million under its revolving credit facility under an amended and restated credit agreement on June 22 to fund the company’s buyback of all company shares owned by OCM Opps EB Holdings Ltd., according to an 8-K filing with the Securities and Exchange Commission.
On June 22, the company entered the securities purchase agreement with OCM to purchase its 3,781,561 shares of Eagle Bulk’s common stock for $219,330,538, representing a purchase price of $58 per share.
Eagle Bulk’s board reviewed and approved the share repurchase on the recommendation of the company’s audit committee made up of independent directors. The board also received a fairness opinion.
This follows a $75 million drawdown made from available funds under the company’s term facility, which was required within 60 days of closing on the amended and restated credit agreement. As previously reported, the company closed on this agreement May 11.
The dry bulk carrier is a Marshall Islands corporation based in Stamford, Conn.
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