DryShips Inc. (NASDAQ:DRYS), or the Company, an international owner of drybulk carriers and offshore support vessels, yesterday announced it has sold five of its Panamax vessels for an aggregate gross price of $29.4 million.
Bulk carrier Ocean Crystal - Image courtesy: Ed Cooke
In particular, the Company has:
Sold its two Panamax vessels Amalfi and Samatan, along with their associated bank debt, to entities controlled by the Company’s Chairman and CEO, Mr. George Economou. As part of the transaction, the Company entered into an agreement to increase its secured revolving facility (“Revolver”) provided by an entity controlled by Mr. George Economou. The Revolver was amended to increase the maximum available amount by $5.0 million to $75.0 million and to give DryShips an option to convert $7.5 million of the outstanding balance to shares of DryShips’ common stock within 365 days. Following this transaction, the outstanding balance under the Revolver will stand at $69.4 million. The transaction was approved by the independent members of the Company’s Board of Directors on the basis of vessel valuations and a fairness opinion.
Sold its three Panamax vessels, Ocean Crystal, Sonoma and Sorrento to unaffiliated Buyers. All of the gross proceeds from the sales will be used to pay down their respective loan facilities. The vessels are scheduled to be delivered to their new owners during November 2016.
DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide. DryShips owns a fleet of 16 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.2 million tons, and 6 offshore supply vessels, comprised of 2 platform supply and 4 oil spill recovery vessels.
DryShips' common stock is listed on the NASDAQ Capital Market where it trades under the symbol "DRYS."
Bulk carrier Sorrento - Image courtesy: Ed Cooke