Diana Shipping inc. agrees to loan up to $50 million to Diana Containerships inc.
Diana Shipping Inc., a global shipping company specializing in the ownership and operation of dry bulk vessels, has announced that yesterday it agreed to loan up to $50 million to Diana Containerships Inc., a former wholly-owned subsidiary of the company of which Diana Shipping Inc. currently owns approximately 10.4% of the issued and outstanding common shares, said in the company's press release. Under the terms of the loan agreement, one or more wholly-owned subsidiaries of Diana Containerships may borrow amounts under the loan to fund vessel acquisitions and for general corporate purposes.
The loan matures on the fourth anniversary of the initial draw down date, and amounts drawn under the loan will bear interest at the rate of LIBOR plus 5.0% per annum. In addition, the borrower will pay the Company a variable back-end fee in an amount of up to 5.0%, in the aggregate, of the total amount outstanding under the loan. The unsecured loan will be guaranteed by Diana Containerships, and Diana Containerships and its subsidiaries may not incur additional indebtedness during the term of the loan without the prior consent of the Company. The loan agreement was approved by a committee of the independent directors of Diana Shipping Inc.
Separately, Diana Shipping Inc. also announced that on May 17, 2013, it signed, through separate wholly-owned subsidiaries, two shipbuilding contracts with China Shipbuilding Trading Company, Limited and Jiangnan Shipyard (Group) Co., Ltd., for the construction of two Newcastlemax dry bulk carriers of approximately 208,500 dwt each for a contract price of US$48.7 million per vessel. The Company expects to take delivery of the vessels during the second quarter of 2016.
Excluding the aforementioned vessels as well as 1 Capesize vessel expected to be delivered to the Company by the end of May 2013 and 2 new-building Ice Class Panamax vessels expected to be delivered to the Company during the fourth quarter of 2013, Diana Shipping Inc.’s fleet currently consists of 32 dry bulk carriers (2 Newcastlemax, 8 Capesize, 3 Post-Panamax, 2 Kamsarmax and 17 Panamax). As of today, the combined carrying capacity of our current fleet, excluding the five vessels not yet delivered, is approximately 3.5 million dwt with a weighted average age of 6.2 years.
About the company
Diana Shipping Inc. is a leading global provider of shipping transportation services through the ownership and operation of dry bulk vessels. The Company’s vessels are employed primarily on medium to long-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.
