DryShips Inc., an international owner of drybulk carriers and offshore support vessels, yesterday (Apr 5) announced the consummation of the following transactions:

The Company has sold three of its vessels, the FakaravaRangiroa and Negonego along with the associated bank debt, to entities controlled by the Company’s Chairman and CEO, Mr. George Economou. The vessels were sold at fair market value as supported by independent third party broker valuations, and the transaction was approved by the disinterested members of the Company’s Board of Directors. As a result of this transaction, the Company’s total bank debt has been reduced by $102.1 million, and currently stands at $213.7 million.

DryShips Inc. Sells trio of vessels and shares in Ocean Rig UDW

Bulk carrier Negonego Image: csaba / shipspotting

The Company has agreed to sell all of its shares in Ocean Rig UDW Inc. (“Ocean Rig”) to an unrestricted subsidiary of Ocean Rig for total cash consideration of approximately $49.9 million. The sale proceeds will be used to partly reduce the outstanding amount under the Revolving Credit Facility (Revolver) provided to us by a company controlled by our Chairman and CEO Mr. Economou and for general corporate purposes.

In addition, the Company has reached an agreement under the Revolver whereby the lender has agreed to release its lien over the Ocean Rig shares and waive any events of default, subject to a similar agreement being reached with the rest of the lenders to Dryships, in exchange for certain LTV covenants being introduced under the Revolver. This transaction was approved by the disinterested members of the Company’s Board of Directors on the basis of a fairness opinion and is subject to standard closing conditions. After this transaction, the Company will no longer hold any equity interest in Ocean Rig.

Ziad Nakhleh, Chief Financial Officer of the Company, commented: “We are pleased to have reached a preliminary agreement with one of our lenders to waive any events of default and we hope that the rest of the lenders follow suit, recognizing the pro-active approach of the Company to reduce its debt burden and cash flow burn.”

DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide. DryShips owns a fleet of 20 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.5 million tons, and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.

Source: DryShips Inc.