Diana Shipping Inc. Announces Pricing of US$150 Million Senior Unsecured Bond Offering
Diana Shipping announced the pricing of a US$150 million private placement of senior unsecured bonds. These bonds, maturing in July 2029, carry a fixed-rate coupon of 8.75% and are callable from three years after issuance. Interest will be paid semi-annually. The proceeds will be used to refinance existing US$125 million senior unsecured bonds due 2026 and for general corporate purposes. The bonds will be listed on the Oslo Stock Exchange, with the offering expected to close on July 2, 2024, subject to customary closing conditions.
- US$150 million raised through bond offering.
- Fixed-rate coupon of 8.75% provides predictable interest expenses.
- Proceeds to refinance existing US$125 million bond, potentially improving financial flexibility.
- Listing on the Oslo Stock Exchange may enhance market visibility.
- New bond issuance increases long-term debt.
- Callable only after three years, limiting early repayment flexibility.
- High-interest rate of 8.75% could lead to increased interest expenses over time.
Insights
Diana Shipping Inc.'s announcement about the pricing of a
The proceeds will be used to refinance an existing
Listing the bonds on the Oslo Stock Exchange is a strategic move, likely to attract European investors who may be more familiar with the shipping industry.
From a retail investor's perspective, it's critical to understand the risk-reward balance here. While the high coupon rate is attractive, the company's financial health and industry-specific risks should be carefully considered.
The shipping industry is currently facing a variety of challenges, including fluctuating demand and regulatory changes. Diana Shipping's decision to issue
For retail investors, it's important to note that while this bond offering ensures capital, it also adds to the company's long-term liabilities. The callable nature of the bonds starting three years post-issuance offers some flexibility, but the high coupon rate implies elevated perceived risk.
The use of proceeds for refinancing existing debt is a positive sign, indicating that the company is looking to optimize its debt structure, but the overall debt level remains a point of caution.
ATHENS, Greece, June 18, 2024 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX), (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today announced the pricing of a US
The net proceeds from the bonds shall be used to refinance all of the Company’s existing US
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 persons that are reasonably believed to be 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.
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, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the outcome of the Company’s potential Bond issuance to which this press release relates, 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 the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s 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, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
What is the amount raised by Diana Shipping's new bond offering?
When do Diana Shipping's new bonds mature?
What is the interest rate on Diana Shipping's newly issued bonds?
What will Diana Shipping use the proceeds from the bond offering for?
Where will Diana Shipping list its new bonds?
When is the expected closing date for Diana Shipping's bond offering?
