Diana Shipping Inc. Announces Amendment of Loan Agreement to Diana Containerships Inc.
September 14 2016 - 9:10AM
Diana Shipping Inc. (NYSE:DSX), (the “Company”), a global shipping
company specializing in the ownership of dry bulk vessels, today
announced that it has amended its existing loan agreement to a
wholly-owned subsidiary of Diana Containerships Inc. (NASDAQ:DCIX),
which is a guarantor of the loan, dated as of May 20, 2013 (as
subsequently amended, the “Loan”). Diana Containerships Inc. is a
former wholly-owned subsidiary of the Company, of which the Company
currently owns approximately 25.7% of the issued and outstanding
common shares. The amendment to the Loan was unanimously approved
by the independent directors of the Company. Pursuant to the
terms of the amendment, the repayment of all outstanding principal
amounts shall be deferred until the later of (i) the repayment or
prepayment in full by Diana Containerships Inc. of the principal
amount of US$8,851,000 (designated as the “Deferred Tranche”) under
its US$148 million loan agreement with The Royal Bank of Scotland
plc dated September 10, 2015, whose repayment is scheduled to
commence on March 15, 2019 and be completed not later than June 15,
2021, and (ii) September 15, 2018. The amendment will also change
the borrower under the Loan to another wholly-owned subsidiary of
Diana Containerships Inc., and provide for an increase of the
interest rate for the period between September 12, 2016 and
December 31, 2018 to 3.35% per annum over USD LIBOR.
Commenting on the amendment to the Loan, the
Company’s Chairman and Chief Executive Officer, Mr. Simeon Palios,
stated that “the Company’s agreement to amend this Loan allows
Diana Containerships Inc. to restructure its secured loan facility
with The Royal Bank of Scotland plc on favorable terms that are
expected to result in significant improvements to Diana
Containerships Inc.’s liquidity and current cash flows in this
challenging market for the container sector. The Company believes
that the enhanced financial position of Diana Containerships Inc.
resulting from the restructuring of The Royal Bank of Scotland plc
loan facility represents an important step in protecting both the
Company’s equity and debt investment in Diana Containerships
Inc.”
About the Company
Diana Shipping Inc. is a global provider of
shipping transportation services through its ownership 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.
Cautionary Statement Regarding
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts.
The Company desires to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 and is including this cautionary statement in
connection with this safe harbor legislation. The words “believe,”
“anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “may,” “should,” “expect,” “pending” and similar
expressions identify forward-looking statements.
The forward-looking statements in this press
release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without
limitation, our management’s examination of historical operating
trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we
cannot assure you that we will achieve or accomplish these
expectations, beliefs or projections.
In addition to these important factors, other
important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates
and vessel values, changes in demand for dry bulk shipping
capacity, changes in our operating expenses, including bunker
prices, drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
vessel breakdowns and instances of off-hires and other factors.
Please see our filings with the Securities and Exchange Commission
for a more complete discussion of these and other risks and
uncertainties.
Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-210-9470-100
Email: izafirakis@dianashippinginc.com
Website: www.dianashippinginc.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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