Diana Shipping Inc. Agrees to Loan up to $50 Million to Diana Containerships
Signs Shipbuilding Contracts for the Purchase of Two Newcastlemax Dry Bulk
ATHENS, Greece, May 21, 2013 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), a global shipping company specializing in the ownership and
operation of dry bulk vessels, has announced that yesterday it agreed to loan
up to $50 million to Diana Containerships Inc. (Nasdaq:DCIX), a former
wholly-owned subsidiary of the Company of which Diana Shipping Inc. currently
owns approximately 10.4% of the issued and outstanding common shares. Under
the terms of the loan agreement, one or more wholly-owned subsidiaries of
Diana Containerships may borrow amounts under the loan to fund vessel
acquisitions and for general corporate purposes. The loan matures on the
fourth anniversary of the initial draw down date, and amounts drawn under the
loan will bear interest at the rate of LIBOR plus 5.0% per annum. In addition,
the borrower will pay the Company a variable back-end fee in an amount of up
to 5.0%, in the aggregate, of the total amount outstanding under the loan. The
unsecured loan will be guaranteed by Diana Containerships, and Diana
Containerships and its subsidiaries may not incur additional indebtedness
during the term of the loan without the prior consent of the Company. The loan
agreement was approved by a committee of the independent directors of Diana
Separately, Diana Shipping Inc. also announced that on May 17, 2013, it
signed, through separate wholly-owned subsidiaries, two shipbuilding contracts
with China Shipbuilding Trading Company, Limited and Jiangnan Shipyard (Group)
Co., Ltd., for the construction of two Newcastlemax dry bulk carriers of
approximately 208,500 dwt each for a contract price of US$48.7 million per
vessel. The Company expects to take delivery of the vessels during the second
quarter of 2016.
Excluding the aforementioned vessels as well as 1 Capesize vessel expected to
be delivered to the Company by the end of May 2013 and 2 new-building Ice
Class Panamax vessels expected to be delivered to the Company during the
fourth quarter of 2013, Diana Shipping Inc.'s fleet currently consists of 32
dry bulk carriers (2 Newcastlemax, 8 Capesize, 3 Post-Panamax, 2 Kamsarmax and
17 Panamax). As of today, the combined carrying capacity of our current fleet,
excluding the five vessels not yet delivered, is approximately 3.5 million dwt
with a weighted average age of 6.2 years. A table describing the current Diana
Shipping Inc. fleet can be found on the Company's website,
www.dianashippinginc.com. Information contained on the Company's website does
not constitute a part of this press release.
About the Company
Diana Shipping Inc. is a leading global provider of shipping transportation
services through the ownership and operation 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, vessels 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.
CONTACT: Corporate Contact:
Director, Executive Vice-President and Secretary
Telephone: + 30-210-947-0100
Investor and Media Relations:
Telephone: + 1-203-972-8350
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