TIME CHARTER CONTRACT FOR M/V CORONIS
BOARD OF DIRECTORS AUTHORIZES SHARE REPURCHASE PLAN
ATHENS, GREECE, May 23, 2014 – 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.