DryShips gets backstop loan for 5% convertible notes due Dec. 1, 2014

By Susanna Moon

Chicago, Oct. 20 – DryShips Inc. said its majority owned subsidiary, Ocean Rig UDW Inc., agreed to provide DryShips with $120 million of liquidity through a short-term unsecured loan.

Proceeds may be used, if needed, to repay the company’s 5% convertible notes due Dec. 1, 2014.

DryShips “fully expects to fund the Dec. 1 maturity of the 5% convertible notes, and the loan from Ocean Rig is just a backstop in case we need a bit more time to execute on the various alternatives we are working on and if drawn, will be repaid as soon as possible,” George Economou, the company’s chairman and chief executive officer, said in a company press release.

DryShips is an Athens-based owner of drybulk carriers and tankers.

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