Diana Shipping to Refinance its Existing Loan
By Aiswarya Lakshmi
Wednesday, July 5, 2017
Diana Shipping, a global shipping company specializing in the ownership of dry bulk vessels, has announced that it has agreed to refinance its existing loan facility with Diana Containerships, having an outstanding balance of US$42.6 million, with a loan facility of US$82.6 million, which reflects an additional loan amount to Diana Containerships of US$40.0 million.
The loan also has an additional US$5.0 million interest-bearing amount, which is classified as discount premium.
The loan matures in 18 months and bears interest at the rate of 6% per annum for the first 12 months, scaled to 9% for the next three months, and further scaled to 12% for the remaining three months of the loan. The loan facility includes financial and other covenants.
Diana Shipping’s Independent Director, Apostolos Kontoyannis, has commented that: “We are very pleased that the new facility is secured with better terms and conditions, especially after the full and final settlement that Diana Containerships Inc. successfully obtained with The Royal Bank of Scotland plc by repaying US$85.0 million for its outstanding loan amount of US$128.9 million.”
Diana Shipping’s fleet currently consists of 51 dry bulk vessels (4 Newcastlemax, 14 Capesize, 5 Post-Panamax, 5 Kamsarmax and 23 Panamax). As of today, the combined carrying capacity of the Company’s fleet is approximately 5.9 million dwt with a weighted average age of 7.93 years.