Diana Shipping’s 8.5% $25-par notes due 2020 begin trading on NYSE

By Stephanie N. Rotondo

Phoenix, May 29 – Diana Shipping Inc.’s $55 million of 8.5% $25-par senior unsecured notes due May 15, 2020 were admitted to the New York Stock Exchange on Friday, according to a market source.

The deal priced May 20. The ticker symbol is “DSXN.”

Up to $12.75 million of the notes were set aside for purchase by Simeon Palios, chief executive officer, or any of his affiliates, as well as other executive officers and directors of the company.

Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, BB&T Capital Markets and Wunderlich Securities Inc. were the joint bookrunners.

Interest will be payable quarterly. The notes become redeemable 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 2017 at par plus accrued interest and a make-whole premium.

If a change of control occurs, or a limited permitted asset sale, the company must offer to repurchase the notes at 101% of par plus accrued interest.

The Athens, Greece-based shipping company will use proceeds for general corporate purposes and working capital. That may include vessel acquisitions or new construction.

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