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Corporate Developments: In March 2012, we reached an agreement in principle with our lenders under the $1.4 billion syndicated credit facility on the amendment of the amortization schedule, the collateral value clause and certain of the financial covenants of the facility to be applied during the period from March 31, 2012 to December 31, 2013. In accordance with the amendment, the loan repayment schedule will be modified to allow, at the Company’s option the deferral of principal repayments in an aggregate amount of up to $100.0 million, originally due between March 2012 and July 2013, to the balloon payment at the end of the facility’s term in 2016, subject to any excess cash flow being applied towards repayment of the deferred amounts, if any. The $100.0 million represents approximately 70% of the principal repayments scheduled for the period until July 2013 and results in a significant cash flow improvement to the Company. During the waiver and deferral period, the applicable margin over LIBOR (other than for any deferred principal amount) will increase to 2.75% per annum and will be 2.5% per annum thereafter through maturity, while the applicable margin for any deferred principal amount will increase to 4.0% per annum. As part of the loan amendment, we will undertake to raise not less than $30.0 million in equity capital by December 31, 2012. The waiver agreement and loan amendment are conditioned upon the Company raising $20.0 million out of the $30.0 million in equity capital, or alternatively securing from external sources the $20.0 million into a deposit account, before April 1, 2012, or by the time the first deferral option is exercised. In order for us to meet the above conditions within the timeframe set by our lenders, we have reached an agreement in principle with certain entities affiliated with the family of the Chairman of the Board of Directors. In addition, we agreed to align the financial covenants of the three remaining bilateral facilities with those of the $1.4 billion syndicated credit facility. About Excel Maritime Carriers Ltd. Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels, one of which, a Capesize vessel, is owned by a joint venture in which Excel holds a 71.4% interest, and, together with seven Panamax vessels under bareboat charters, operates 47 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and three Handymax vessels) with a total carrying capacity of approximately 4.1 million DWT. Excel’s Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about Excel, please go to our corporate website www.excelmaritime.com. Excel Maritime Carriers Ltd. press release |