Athens, Greece - July 5, 2017
Diana Containerships Inc. (NASDAQ: DCIX), (the “Company”), a global shipping company specializing in the ownership of containerships, today announced that it has paid an aggregate of US$85.0 million for full and final settlement of its US$148.0 million secured loan facility with The Royal Bank of Scotland plc (“RBS”), entered into on September 10, 2015, which had an outstanding balance of US$128.9 million as of June 30, 2017.
The Company funded the refinancing of the RBS loan with aggregate proceeds of US$75.0 million under two new secured loan facilities with Addiewell Ltd., an unaffiliated third party, in the amount of US$35.0 million, and with Diana Shipping Inc. in the amount of US$40.0 million, together with available cash on hand of US$10.0 million.
The Company has refinanced its existing unsecured loan facility with Diana Shipping Inc., entered into on May 20, 2013, having an outstanding balance of US$42.6 million as of June 30, 2017. The principal amount of the new secured loan of US$82.6 million with Diana Shipping Inc. includes the existing loan and the new loan used to refinance the Company's RBS loan.
The new loans, which are secured by first and second priority mortgages over the Company's eleven containerships, each mature in eighteen (18) months and bear interest at the rate of 6% per annum for the first twelve (12) months scaled to 9% for the next three (3) months and further scaled to 12% for the remaining three (3) months of the loans. Additionally, there is a discount premium amount of US$10.0 million and US$5.0 million for the loans with Addiewell Ltd. and Diana Shipping Inc., respectively. The new loan facilities include financial and other covenants which stipulate the repayment of these facilities with proceeds from the sale of assets of the Company, proceeds from the issuance of new equity and proceeds from the exercise of existing warrants to purchase the Company's Series B Convertible Preferred Shares.
Mr. Symeon Palios, Director, Chief Executive Officer and Chairman of the Board, commented that:
“We are very pleased with the full and final settlement of the RBS Loan which adds a substantial amount of equity value to the Company’s shareholders. In addition, the new loans will provide the Company the flexibility to take advantage of the improving market conditions of the containership segment, as well as to use alternative ways to reduce the leverage on its balance sheet.”
Diana Containerships Inc.'s fleet consists of 11 container vessels (6 Post-Panamax and 5 Panamax). A table describing the current Diana Containerships Inc. fleet can be found on the Company’s website, www.dcontainerships.com. Information included...
Diana Containerships Inc. press release