Paragon Shipping Enters Into A $69 Million Credit Facility With China
Development Bank And Amends Its Credit Facility With Nordea
ATHENS, Greece, May 20, 2013
ATHENS, Greece, May 20, 2013 /PRNewswire/ --Paragon Shipping Inc. (NASDAQ:
PRGN) ("Paragon Shipping" or the "Company"), a global shipping transportation
company specializing in drybulk cargoes, announced today that it has signed an
agreement for a $69 million credit facility with China Development Bank ("CDB
Credit Facility") to partially finance its two 4,800 TEU containerships
currently under construction, that are expected to be delivered in the second
quarter of 2014. The Company has granted an option to Box Ships Inc. (NYSE :
TEU), a subsidiary of the Company until its initial public offering in 2011,
to acquire the vessels at any time prior to their delivery to Paragon
The CDB Credit Facility, which is available for drawdown upon the delivery of
the vessels subject to certain contingencies and conditions, will be used to
finance the lower of 60% of the construction cost of the vessels, or 80% of
the vessels' market value at delivery. The facility matures ten years after
the drawdown date. Under the terms of the credit facility, amounts borrowed
will bear interest at LIBOR, plus a margin of 4.00%. The financial covenants
and other conditions contained in the CDB Credit Facility are similar to the
ones contained in the Company's existing credit facilities. In addition, this
facility can be freely transferred to Box Ships Inc. if Box Ships decides to
declare its option to acquire these vessels before their delivery.
In addition, the Company has agreed with the syndicate led by Nordea Bank
Finland Plc ("Nordea"), subject to definitive documentation, to remove the
condition precedent under which drawdown of the loan is subject to the
prepayment of the Company's loan outstanding to Box Ships Inc. from our
syndicated secured loan facility entered into between the Company and Nordea,
Commenting on the developments, our Chairman and CEO, Michael Bodouroglou
stated, "We are very pleased to start a new relationship with China
Development Bank, and appreciate the continuous support of our existing
About Paragon Shipping
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. The Company's
current fleet consists of thirteen drybulk vessels with a total carrying
capacity of 816,472 dwt. In addition, the Company's current newbuilding
program consists of one Handysize drybulk carrier that is scheduled to be
delivered in the fourth quarter of 2013 and two 4,800 TEU containerships that
are scheduled to be delivered in 2014. Paragon Shipping has granted Box Ships
Inc., an affiliated company, the option to acquire its two containerships
For more information, visit: www.paragonship.com.
The information contained on the Company's website does not constitute part of
this press release.
Paragon Shipping Inc.
Allen & Caron Inc.
Rudy Barrio (Investors)
Len Hall (Media)
SOURCE Paragon Shipping Inc.
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