The turmoil in the asset-backed credit markets seems not to have impacted the availability and pricing of secured shipping finance.

In an environment where most vessel purchases are tied to forward chartering commitments, one deal in particular, for Nasdaq-listed Eagle Bulk Shipping, demonstrates a very creative approach to handling counterparty risk.

During July, New York Stock Exchange-listed Genco Shipping and Trading announced that the company would acquire nine capesize newbuildings - with seven yet to be delivered - from Swiss owner Theodore Angelopoulos (Metrostar Management). Four of the units, two of which are now on the water, have already been fixed on timecharters.

The Genco financing strategy includes a new 10-year USD1.4 billion revolving credit facility, with lender DnB Nor serving as lead arranger, bookrunner and administrative agent.

DnB has established a relationship with Genco, participating, along with Nordea and Citibank, in previous lending. Borrowings under the new loan will be priced at Libor plus 80bp through to the fifth year and, thereafter, at an 85bp margin. Genco's stated dividend policy of paying out all available cash, less appropriate reserves, remains unchanged.

The abundance of caution surrounding Genco's financial dealings can be seen in its management of interest rate risk. In addition to the notional USD406 million of interest rate swaps between Genco and counterparty DnB, the two parties entered into two new swaps, commencing in March 2008 with four-year tenors and an aggregate notional value of USD150 million. The rates are effectively fixed at just over 5 per cent, plus the applicable margin, or roughly 5.8 per cent all-in on the USD150 million that will be drawn under the new facility.

Within a week of the Genco announcement, Eagle Bulk Shipping announced that it would acquire 26 supramax drybulker newbuildings put on order by privately held Greek owner Anemi. Eagle said that 21 of the vessels, set to deliver between 2008 and 2012, would be fixed on long-term charters.

The lengthiest deals will extend out to 2018; many of the charters will have a floor rate with upside profit sharing. Eagle said that it would enter into a new USD1.6 billion 10-year revolving credit, to be led by its long-time banker Royal Bank of Scotland (RBS), replacing the current USD500 million facility with RBS, which priced at between 75bp and 80bp depending on loan-to-value (LTV) calculations.

Sophocles Zoullas, Eagle's chief executive officer (CEO), is a financial markets veteran. In his remarks to equity analysts after the 26-vessel acquisition was announced, he stresses that Eagle will be looking to use a "portfolio approach" in managing charter lengths, but he indicated interest in medium- to longer-term contracts.