Diana Shipping Inc. Announces Pricing of US$125 Million Senior Unsecured Bond Offering
Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, announced yesterday the pricing of a US$125 million private placement of senior unsecured bonds maturing in June 2026 and callable beginning three years after issuance. The bond offering was priced with a U.S. dollar fixed-rate coupon of 8.375%. Interest will be payable semi-annually in arrears in June and December of each year. The Company will apply for listing of the bonds on the Oslo Stock Exchange. The offering was significantly oversubscribed and is expected to close on June 22, 2021, subject to customary closing conditions.
In conjunction with the offering, the Company has bought back US$78.25 million of the 9.5% senior unsecured bonds due 2023 and with ISIN NO0010832868 (“DIASH01”). The net proceeds from the bonds shall be used to refinance the remaining portion of DIASH01 and for general corporate purposes.
Arctic Securities and Nordea acted as Joint Bookrunners.
Important Information
The bonds offered as described in this press release have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States or other jurisdiction, and may not be offered or sold absent registration or an applicable exemption from registration requirements under the Securities Act or any state or other jurisdiction’s securities laws. The bonds will be sold only to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act and to persons outside the United States in reliance on Regulation S under the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Diana Shipping Inc. Announces Time Charter Contracts for m/v P. S. Palios with Olam and m/v Maia with Viterra
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Olam International Limited, Singapore, for one of its Capesize dry bulk vessels, the m/v P. S. Palios. The gross charter rate is US$26,500 per day, minus a 4.75% commission paid to third parties, for a time charter period until minimum February 15, 2022 up to maximum April 15, 2022. The charter is expected to commence on June 6, 2021. The m/v P. S. Palios is currently chartered, as previously announced, to C Transport Maritime Ltd., Bermuda, at a gross charter rate of US$12,050 per day, minus a 5% commission paid to third parties.
The “P. S. Palios” is a 179,134 dwt Capesize dry bulk vessel built in 2013.
The Company also announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Viterra Chartering B.V., Rotterdam, for one of its Kamsarmax dry bulk vessels, the m/v Maia. The gross charter rate is US$25,000 per day, minus a 5% commission paid to third parties, for a period until minimum May 1, 2022 up to June 30, 2022. The charter is expected to commence on June 10, 2021. The m/v Maia is currently chartered, as previously announced, to Aquavita International S.A., at a gross charter rate of US$11,200 per day, minus a 5% commission paid to third parties.
The “Maia” is a 82,193 dwt Kamsarmax dry bulk vessel built in 2009.
The employments of “P. S. Palios” and “Maia” are anticipated to generate approximately US$14.62 million of gross revenue for the minimum scheduled period of the time charters.
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.29 years.
Diana Shipping Inc. Announces Fixed Income Investor Calls
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has mandated Arctic Securities AS and Nordea Bank Abp, Filial i Norge to arrange a series of investor calls. Subject to inter alia market conditions, a USD denominated senior unsecured bond issue with five year tenor may follow.
The proceeds from the potential bond issue will be used for refinancing of DIASH01 and for general corporate purposes. In conjunction with the potential bond issue, the Company will consider a conditional buyback of DIASH01 (ISIN: NO0010832868) maturing 27 September 2023.
The senior unsecured bonds, if issued, will be offered in the United States or its territories only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The bonds, if issued, will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Diana Shipping Inc., nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Diana Shipping Inc. Announces Time Charter Contract for m/v Myrsini with Bocimar
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Bocimar International N.V., for one of its Kamsarmax dry bulk vessels, the m/v Myrsini. The gross charter rate is US$27,750 per day, minus a 5% commission paid to third parties, for a time charter period until minimum October 15, 2021 up to maximum November 30, 2021. The charter is expected to commence on May 10, 2021. The m/v Myrsini is currently chartered, as previously announced, to Ausca Shipping Limited, Hong Kong, at a gross charter rate of US$11,500 per day, minus a 5% commission paid to third parties.
The “Myrsini” is a 82,117 dwt Kamsarmax dry bulk vessel built in 2010.
The employment of “Myrsini” is anticipated to generate approximately US$4.3 million of gross revenue for the minimum scheduled period of the time charter.
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.21 years.
Diana Shipping Inc. Announces Time Charter Contract for m/v Electra
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Tongli Shipping Pte. Ltd., for one of its Post-Panamax dry bulk vessels, the m/v Electra. The gross charter rate is US$21,000 per day, minus a 5% commission paid to third parties, for a time charter period until minimum February 10, 2022 up to maximum April 10, 2022. The charter is expected to commence today.
The “Electra” is a 87,150 dwt Post-Panamax dry bulk vessel built in 2013.
The employment of “Electra” is anticipated to generate approximately US$5.92 million of gross revenue for the minimum scheduled period of the time charter.
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.19 years.
Diana Shipping Inc. Announces Time Charter Contract for m/v Philadelphia with Classic Maritime
Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Classic Maritime Inc., for one of its Newcastlemax dry bulk vessels, the m/v Philadelphia. The gross charter rate is US$28,500 per day, minus a 5% commission paid to third parties, for a period until minimum March 1, 2022 up to maximum May 1, 2022. The charter commenced earlier today. The m/v Philadelphia was chartered, as previously announced, to BHP Billiton Freight Singapore Pte. Ltd., at a gross charter rate of US$14,500 per day, minus a 5% commission paid to third parties.
The “Philadelphia” is a 206,040 dwt Newcastlemax dry bulk vessel built in 2012.
The employment of “Philadelphia” is anticipated to generate approximately US$8.81 million of gross revenue for the minimum scheduled period of the time charter.
Commenting on this charter, the Company’s Chief Executive Officer, Ms. Semiramis Paliou, stated:
“We are pleased to announce the specific time charter fixture, which is in line with our chartering strategy over the years. We find it especially noteworthy that the m/v Philadelphia has been fixed at the highest rate since the vessel was delivered to us in 2012, a reflection of the robust current dry bulk market.”
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Naias, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.17 years.
Diana Shipping Inc. Announces the Sale of a Panamax Dry Bulk Vessel, the m/v Naias
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that on March 16, 2021 it signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement to sell to an unaffiliated third party, the 2006-built vessel “Naias”, with delivery to the buyer latest by July 30, 2021, for a sale price of US$11.25 million before commissions.
Upon completion of the aforementioned sale, Diana Shipping Inc.’s fleet will consist of 36 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 10 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Naias, is approximately 4.7 million dwt with a weighted average age of 10.07 years.
Diana Shipping Inc. Announces Time Charter Contracts for m/v San Francisco with Olam and m/v Aliki with Solebay
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Olam International Limited, Singapore, for one of its Newcastlemax dry bulk vessels, the m/v San Francisco, for a period until minimum January 15, 2022 up to maximum March 15, 2022. The gross charter rate is US$17,750 per day for the first one hundred five (105) days of the charter period and US$24,700 per day for the balance period of the time charter, in each case minus a 5% commission paid to third parties. The charter commenced retroactively on February 11, 2021. The m/v San Francisco was chartered, as previously announced, to Koch Shipping Pte. Ltd., Singapore, at a gross charter rate of US$16,000 per day, minus a 5% commission paid to third parties.
The “San Francisco” is a 208,006 dwt Newcastlemax dry bulk vessel built in 2017.
The Company also announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Solebay Shipping Cape Company Limited, Hong Kong, for one of its Capesize dry bulk vessels, the m/v Aliki. The gross charter rate is US$20,500 per day, minus a 5% commission paid to third parties, for a period until minimum January 15, 2022 up to maximum March 15, 2022. The charter is expected to commence on March 19, 2021. The m/v Aliki is currently chartered, as previously announced, to Koch Shipping Pte. Ltd., Singapore, at a gross charter rate of US$11,300 per day, minus a 5% commission paid to third parties.
The “Aliki” is a 180,235 dwt Capesize dry bulk vessel built in 2005.
The employments of “San Francisco” and “Aliki” are anticipated to generate approximately US$13.56 million of gross revenue for the minimum scheduled period of the time charters.
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Oceanis, Diana Shipping Inc.’s fleet will consist of 37 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 11 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Oceanis, is approximately 4.8 million dwt with a weighted average age of 10.21 years.
Diana Shipping Inc. Announces Time Charter Contract for m/v Calipso With Viterra
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, today announced that, through a separate wholly-owned subsidiary, it has entered into a time charter contract with Viterra Chartering B.V., Rotterdam, for one of its Panamax dry bulk vessels, the m/v Calipso. The gross charter rate is US$10,400 per day, minus a 5% commission paid to third parties, for a period until minimum October 1, 2021 up to maximum December 15, 2021. The charter is expected to commence tomorrow. The m/v Calipso was chartered, as previously announced, to Uniper Global Commodities SE, Düsseldorf, at a gross charter rate of US$8,250 per day, minus a 5% commission paid to third parties.
The “Calipso” is a 73,691 dwt Panamax dry bulk vessel built in 2005.
The employment of “Calipso” is anticipated to generate approximately US$2.59 million of gross revenue for the minimum scheduled period of the time charter.
Upon completion of the previously announced sale of one Panamax dry bulk vessel, the m/v Oceanis, Diana Shipping Inc.’s fleet will consist of 37 dry bulk vessels (4 Newcastlemax, 12 Capesize, 5 Post-Panamax, 5 Kamsarmax and 11 Panamax). As of today, the combined carrying capacity of the Company’s fleet, including the m/v Oceanis, is approximately 4.8 million dwt with a weighted average age of 10.08 years.
Diana Shipping Inc. Announces Increase in Tender Offer Price for its Shares of Common Stock and Extension of Expiration Date
Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, announced that it is amending the terms of its previously announced cash tender offer (the “Tender Offer”) to purchase up to 6,000,000 shares of its outstanding common stock to increase the price at which it will purchase shares of common stock to $2.50 per share from $2.00 per share. The closing price of the Company’s common shares on January 12, 2021, the last full trading day prior to the Company’s announcement of its intention to increase the purchase price for the shares, was $2.35 per share. The closing price of the Company’s common shares on December 14, 2020, the last full trading day prior to the commencement of the Tender Offer, was $1.80. The number of common shares that the Company is offering to purchase remains unchanged at 6,000,000 shares, and the maximum aggregate size of the offering will increase from $12.0 million to $15.0 million.
In addition, the Company has extended the Expiration Date, so that the Tender Offer, the proration period and withdrawal rights will now expire at 5:00 p.m., EasternTime, on Wednesday, January 27, 2021, unless further extended or earlier terminated.
Stockholders who have previously validly tendered and not withdrawn their shares do not need to re-tender their shares or take any other action in response to this amendment to increase the purchase price and extend the Tender Offer, and if such shares are not withdrawn prior to the Expiration Date will receive the amended purchase price for their shares. The terms and conditions of the Tender Offer, prior to the amendment described in this press release, were set forth in the Company’s “Offer to Purchase” and “Letter of Transmittal”, each dated December 15, 2020, as amended on December 22, 2020, and the other related materials that the Company distributed to stockholders, which were filed with the Securities and Exchange Commission (“SEC”) as exhibits to the Company’s Schedule TO on December 15, 2020 (as amended by Amendment No. 1 to the Schedule TO dated December 22, 2020).