PRGNF Paragon Shipping Inc (CE)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2016

 

Commission File Number: 001-33655

 

PARAGON SHIPPING INC.

(Name of Registrant)

 

15 Karamanli Ave., GR 166 73, Voula, Greece

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒   Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

 

 

 

PARAGON SHIPPING INC.

 

EXHIBITS

 

Exhibit Number	Description
99.1	Press Release, dated January 11, 2016, issued by Paragon Shipping Inc.

 

 

 

 

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

		PARAGON SHIPPING INC.
Date:  January 11, 2016		By: /s/ NIKOLAS ARACHOVAS
		Nikolas Arachovas
		Chief Financial Officer

 

Exhibit 99.1

 

  

 

PARAGON SHIPPING ANNOUNCES THE SALE OF M/V KIND SEAS

AND AN AGREEMENT WITH ONE OF ITS LENDERS

 

January 11, 2016 - Athens, Greece – Paragon Shipping Inc. (the “Company”) announced that it has entered into an agreement to sell M/V Kind Seas for a cash consideration of $3.5 million to an unaffiliated third party and the delivery of the vessel was concluded on January 8, 2016.

The Company has also agreed with Bank of Ireland to apply the total net proceeds from the sale of M/V Kind Seas towards an immediate prepayment of the loan facility. The remaining principal amount of $4.4 million shall be treated as follows: a) $2.2 million shall be written-off subject to certain conditions and b) $2.2 million, plus any accrued interest, was converted into an unsecured paid-in-kind note (“PIK Note”). The PIK Note will be non-amortizing and will have a maturity date of December 31, 2020, at which time it will be repaid at par. Interest on the PIK Note will accrue on a quarterly basis at an interest rate equal to the aggregate of 2.5% and the applicable LIBOR, and will be treated as payment-in-kind. The Company has the option to convert the PIK Note into its Class A common shares, subject to certain conditions, partially or wholly, at any time until the maturity date and based on the twenty-day average closing price of the Company’s shares immediately prior to the conversion date.

Mr. Michael Bodouroglou, Chairman, President and Chief Executive Officer of the Company, commented: “We are pleased to announce the above transaction that improves considerably our cash flow. Also, the ability to write-off a portion of the loan improves further the overall leverage of the Company. We remain committed to take any appropriate actions that preserve our liquidity in these extremely adverse market conditions.”

 

About Paragon Shipping Inc.

Paragon Shipping is an international shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. Paragon Shipping’s current fleet consists of nine drybulk vessels with a total carrying capacity of 519,300 dwt. In addition, Paragon Shipping’s current newbuilding contracts consist of two Ultramax and three Kamsarmax drybulk carriers with scheduled deliveries in the first quarter of 2016. The Company’s common shares and senior notes trade on the NASDAQ Capital Market under the symbols “PRGN” and “PRGNL,” respectively. For more information, visit: www.paragonship.com. The information contained on Paragon Shipping’s website does not constitute part of this press release.

 

Contacts:

 

Paragon Shipping Inc.
ir@paragonshipping.gr

 

DresnerAllenCaron

Rudy Barrio (Investors)

rbarrio@dresnerallencaron.com

(212) 691-8087