Diana Shipping Inc. (NYSE:DSX) entered into two time charter contracts with EDF Trading Limited, London, for its two Newcastlemax dry bulk carriers, the m/v Los Angeles and the m/v Philadelphia, which are currently under construction. Both charters will be at a gross rate of US$18,000 per day, minus a 5% commission paid to third parties, for a minimum 46 to a maximum 50 month period for the Los Angeles and a minimum 44 to a maximum 50 month period for the Philadelphia. As previously announced, the above mentioned vessels are Newcastlemax dry bulk carriers of approximately 206,000 dwt each that were contracted in April 2010. The charters are expected to commence upon delivery of the Los Angeles and the Philadelphia to the Company from the shipbuilding yard, which is expected to occur in February 2012 and in April 2012, respectively.
The time charter contracts of the two vessels are expected to generate approximately $48.6m of gross revenues for the minimum scheduled period of the charters. Separately, the company also announced that it has completed the drawdown of $15 million from a loan facility with Emporiki Bank of Greece S.A. through a wholly owned subsidiary. The purpose of this facility is to partly finance the acquisition cost of the m/v Arethusa which was delivered to the Company on July 7, 2011.