Diana Shipping Inc. (NYSE:DSX) (the “Company”), a global shipping
company specializing in the ownership of dry bulk vessels, today
announced that it has priced its previously announced underwritten
public offering of 17,500,000 common shares, par value US$0.01 per
share, at a price of US$4.00 per share. The Company has granted the
underwriters an over-allotment option for a period of 30 days from
the closing of this offering to purchase up to an additional
2,625,000 shares of common stock at the public offering price,
less underwriting discounts.
As part of the offering, entities affiliated
with Simeon Palios, the Company’s Chief Executive Officer and
Chairman, executive officers and certain directors, have agreed to
purchase an aggregate of 5,500,000 common shares at the public
offering price.
The gross proceeds from the offering before
underwriting discounts and other offering expenses are expected to
be US$70.0 million. The offering is expected to close on April 26,
2017, subject to customary conditions.
Substantially all of the net proceeds of the
offering are expected to be used to fund the acquisition costs of
additional dry bulk vessels, including two 2013-built Post-Panamax
dry bulk vessels that the Company has agreed to purchase from
unaffiliated third parties and one 2013-built Kamsarmax dry bulk
vessel that the Company has agreed to purchase from an unaffiliated
third party. The acquisition of the three vessels is subject to
approval by the Board of Directors of the Company. Any net proceeds
from the offering not used for vessel acquisitions will be used for
general corporate purposes.
Wells Fargo Securities, LLC and Clarksons Platou
Securities, Inc. are acting as joint book-running managers in the
offering and BNP Paribas Securities Corp. is acting as co-lead
manager.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities, in any state or
other jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction. This
offering is being made only by means of a prospectus supplement and
accompanying base prospectus. A prospectus supplement related to
the offering will be filed with the U.S. Securities and Exchange
Commission (the “SEC”) and will be available on the SEC’s website
located at www.sec.gov. When available, copies of the
prospectus supplement and the accompanying base prospectus relating
to this offering may be obtained from Wells Fargo Securities,
Attention: Equity Syndicate Department, 375 Park Avenue, New York,
New York, 10152, at (800) 326-5897 or email a request to
cmclientsupport@wellsfargo.com or Clarksons Platou Securities,
Inc., 280 Park Avenue, 21st floor, New York, NY 10019, (or by phone
at (212) 317-7080, or by e-mail at prospectuses@clarksons.com).
About the Company
Diana Shipping Inc. is a 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 charters and transport a range of dry bulk cargoes,
including such commodities as iron ore, coal, grain and other
materials along worldwide shipping routes. Diana Shipping Inc.’s
fleet currently consists of 48 dry bulk vessels (4 Newcastlemax, 14
Capesize, 3 Post-Panamax, 4 Kamsarmax and 23 Panamax). The Company
also expects to take delivery of two 2013-built Post-Panamax dry
bulk vessels and one 2013-built Kamsarmax dry bulk vessel during
June 2017. As of today, the combined carrying capacity of the
Company’s fleet, excluding the three vessels not yet delivered, is
approximately 5.7 million dwt with a weighted average age of 7.89
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.
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, the Company’s 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 which 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 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, potential disruption of shipping routes due
to accidents or political events, vessel breakdowns and instances
of off-hires and other factors. Please see the Company’s filings
with the SEC for a more complete discussion of these and other
risks and uncertainties.
Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-210-9470-100
Email: izafirakis@dianashippinginc.com
Website: www.dianashippinginc.com
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
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