Diana Shipping Inc. Announces Signing and Drawdown of a US$18 Million Term
Loan Facility With Commonwealth Bank of Australia
Announces Time Charter Contract for m/v Crystalia With Glencore
ATHENS, Greece, Jan. 14, 2014 (GLOBE NEWSWIRE) -- Diana Shipping Inc.
(NYSE:DSX), (the "Company"), a global shipping company specializing in the
ownership of dry bulk vessels, today announced that it has completed a
drawdown of US$18 million, through two separate wholly-owned subsidiaries,
under a term loan facility it has signed for up to US$18 million with
Commonwealth Bank of Australia. The proceeds will be used to partially finance
the acquisition costs of two Panamax dry bulk vessels, the m/v "Melite" and
the m/v "Artemis", which were delivered to the Company on January 28, 2010 and
August 26, 2013, respectively.
Additionally, the Company announced that through a separate wholly-owned
subsidiary, it entered into a time charter contract with Glencore Grain B.V.,
Rotterdam, for one of its Ice Class Panamax dry bulk vessels, the m/v
"Crystalia", which is currently under construction. The gross charter rate is
US$15,800 per day, minus a 5% commission paid to third parties, for a period
of minimum eighteen (18) months to maximum twenty-one (21) months.
As previously announced, the "Crystalia" is a newbuilding Ice Class Panamax
dry bulk vessel of 77,525 dwt that was contracted in March 2012. The charter
is expected to commence upon delivery of the vessel to the Company from the
shipbuilding yard, which is expected to occur by mid-February 2014.
This employment is anticipated to generate approximately US$8.5 million of
gross revenue for the minimum scheduled period of the charter.
Excluding the m/v "Crystalia", Diana Shipping Inc.'s fleet currently consists
of 36 dry bulk vessels (2 Newcastlemax, 10 Capesize, 3 Post-Panamax, 3
Kamsarmax and 18 Panamax). The Company also expects to take delivery of one
new-building Ice Class Panamax dry bulk vessel during the first quarter of
2014 as well as 2 new-building Newcastlemax dry bulk vessels and one Kamsarmax
dry bulk vessel during the second quarter of 2016. As of today, the combined
carrying capacity of our fleet, excluding the five vessels not yet delivered,
is approximately 4.1 million dwt with a weighted average age of 6.63 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 its ownership 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, vessel 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: + 30-210-9470-100
Investor and Media Relations:
Telephone: + 1-203-972-8350
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