Diana Shipping Inc. Announces Successful US$25 Million Tap Issue

Rhea-AI Summary

Diana Shipping Inc. (NYSE: DSX) has successfully completed a US$25 million tap issue under its outstanding senior unsecured bond issue due July 2, 2029. The tap issue was priced at 102.00% of par value, bringing the total outstanding amount under the Bonds to US$175 million. The company, which specializes in dry bulk vessel ownership and bareboat charter-in, plans to use the net proceeds for general corporate purposes in accordance with the Bonds' terms.

Positive

• Successfully raised US$25 million through tap issue
• Bonds priced at 102.00% of par value, indicating strong market demand
• Total bond amount increased to US$175 million, strengthening financial position

Negative

• Increased debt obligations with new US$25 million bond issuance
• Additional interest payment obligations until 2029

Insights

Financial Analyst

The $25 million tap issue represents a strategic financial move that strengthens Diana Shipping's capital structure. Pricing at 102% of par value indicates strong investor confidence and favorable market conditions. The expanded bond issue, now totaling $175 million with maturity in 2029, provides enhanced financial flexibility and liquidity for the dry bulk shipping operator.

The successful completion through reverse inquiry suggests organic demand from institutional investors, reflecting positively on DSX's credit quality. With the dry bulk shipping market experiencing volatility, this additional capital buffer positions the company well for potential market opportunities while maintaining operational flexibility. The premium pricing also indicates investors' positive outlook on the company's long-term prospects in the shipping sector.

ATHENS, Greece, Nov. 04, 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, has today successfully completed a US$25 million tap issue under its outstanding senior unsecured bond issue due July 2, 2029 with ISIN NO0013265835 (the "Bonds"). Total outstanding amount under the Bonds following the tap issue is US$175 million. The tap issue was initiated by a reverse inquiry and was priced at 102.00% of par value. Net proceeds from the tap issue will be used for general corporate purposes in accordance with the Bonds’ terms.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-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, 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 value of Diana Shipping's (DSX) recent tap issue?

Diana Shipping (DSX) completed a US$25 million tap issue under its outstanding senior unsecured bond issue.

When will Diana Shipping's (DSX) bonds mature?

Diana Shipping's (DSX) bonds are due July 2, 2029.

What is the total outstanding bond amount for Diana Shipping (DSX) after the tap issue?

After the tap issue, the total outstanding bond amount for Diana Shipping (DSX) is US$175 million.

What was the pricing of Diana Shipping's (DSX) tap issue?

Diana Shipping's (DSX) tap issue was priced at 102.00% of par value.