Diana Shipping Inc. Announces Drawdown of US$30 Million From a Term Loan
Facility With The Export-Import Bank of China
TIME CHARTER CONTRACT FOR M/V CORONIS
BOARD OF DIRECTORS AUTHORIZES SHARE REPURCHASE PLAN
ATHENS, Greece, May 23, 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 yesterday it completed a
drawdown of US$30 million, through two separate wholly-owned subsidiaries,
under a term loan facility it has signed for up to US$30 million with The
Export-Import Bank of China having a majority interest and DNB Bank ASA as
agent. The proceeds will be used to partially finance the acquisition costs of
the two Ice Class Panamax dry bulk vessels, the m/v "Crystalia" and the m/v
"Atalandi", which were delivered to the Company on February 20, 2014 and May
12, 2014, respectively.
Additionally, the Company announced that through a separate wholly-owned
subsidiary, it has entered into a time charter contract with Oberon Holdings
Limited,for one of its Panamax dry bulk vessels, the m/v "Coronis". The gross
charter rate is US$11,550 per day, minus a 5% commission paid to third
parties, for a period of minimum eleven (11) months to maximum fourteen (14)
months. The charter is expected to commence at the beginning of June 2014.
The Coronis is a 74,381 dwt Panamax dry bulk vessel built in 2006.
This employment is anticipated to generate approximately US$3.8 million of
gross revenue for the minimum scheduled period of the charter.
Separately, the Company also announced that the Board of Directors has
authorized a share repurchase plan for up to US$100 million of the Company's
common shares. However, the Company is not obligated to repurchase any shares
under the plan.
Diana Shipping Inc.'s fleet currently consists of 38 dry bulk vessels (2
Newcastlemax, 10 Capesize, 3 Post-Panamax, 3 Kamsarmax and 20 Panamax). The
Company also expects to take delivery of 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 three
vessels not yet delivered, is approximately 4.21 million dwt with a weighted
average age of 6.73 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, Chief Operating Officer and Secretary
Telephone: + 30-210-9470-100
Investor and Media Relations:
Telephone: + 1-203-972-8350
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