Scorpio Bulkers talks $35 million $25-par 2019 notes at 7.5%-7.625%

By Angela McDaniels

Tacoma, Wash., Sept. 10 – Scorpio Bulkers Inc. said it plans to price $35 million principal amount of $25-par senior notes due Sept. 15, 2019 with a $5.25 million over-allotment option.

Price talk is 7.5% to 7.625%.

The company announced plans for the offering on Aug. 7 and disclosed the expected issue size in a news release on Wednesday.

Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc. and Jefferies LLC are the bookrunners. BB&T Capital Markets, Janney Montgomery Scott LLC, Wunderlich Securities, Inc. and MLV & Co. LLC are the co-managers.

The notes will become callable at par in 2016. Holders will have a put option at 101 upon a change of control.

Under the covenants of the note indenture, the company’s net borrowings cannot equal or exceed 70% of its total assets, and it must keep its tangible net worth above $500 million.

The company has applied to list the new notes on the New York Stock Exchange under the ticker symbol “SLTB.”

The Monaco-based shipping company plans to use the proceeds to fund installment payments due under its newbuilding program. Any remaining proceeds will be used for general corporate purposes and working capital.

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