By Stephanie N. Rotondo and Toni Weeks
Phoenix, May 20 – Diana Shipping Inc. priced $55 million of 8.5% $25-par five-year senior notes on Wednesday, according to a press release. The deal has a 30-day $8.25 million greenshoe.
Earlier in the day, the company said it would offer at least $40 million $25-par senior notes due May 2020, according to a prospectus filed with the Securities and Exchange Commission.
Price talk was 8.5% to 8.75%, a market source said.
Simeon Palios, chief executive officer, or any of his affiliates, as well as other executive officers and directors of the company have purchased $12.75 million of the notes.
Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, BB&T Capital Markets and Wunderlich Securities Inc. are the joint bookrunners.
Interest will be payable quarterly. The notes become redeemable on May 15, 2017 – or in whole at any time upon a taxation change – at par plus accrued interest. The company can also redeem the notes, in whole, prior to May 15, 2017 at par plus accrued interest and a make-whole premium.
Settlement is expected May 28.
The Athens, Greece-based shipping company has applied to list the notes on the New York Stock Exchange under the ticker symbol “DSXN.”
Proceeds will be used for general corporate purposes and working capital. That may include vessel acquisitions or new construction.
| Issuer: | Diana Shipping Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $55 million
|
| Greenshoe: | $8.25 million
|
| Maturity: | May 15, 2020
|
| Bookrunners: | Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, BB&T Capital Markets, Wunderlich Securities Inc.
|
| Coupon: | 8.5%, payable quarterly
|
| Price: | Par of $25.00
|
| Call option: | On or after May 15, 2017 (or at any time upon taxation change) at par plus accrued interest; prior to May 15, 2017, at par plus accrued interest and make-whole premium
|
| Investor: | Simon Palios (for $12.75 million)
|
| Pricing date: | May 20
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| Settlement date: | May 28
|
| Price talk: | 8.5% to 8.75%
|
| Stock symbol: | NYSE: DSXN (expected)
|
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