Diana greenshoe exercise brings 8.5% $25-par notes to $63.25 million

By Stephanie N. Rotondo

Phoenix, June 9 – Diana Shipping Inc. sold an additional $8.25 million of its 8.5% $25-par senior notes due May 15, 2020, according to a 6-K filed with the Securities and Exchange Commission on Tuesday.

The company initially sold $55 million of the notes on May 20. With the greenshoe, the total issuance comes to $63.25 million.

The notes are listed on the New York Stock Exchange under the ticker symbol “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 or a limited permitted asset sale occurs, the company must offer to repurchase the notes at 101% of par plus accrued interest.

The Athens-based shipping company is using proceeds for general corporate purposes and working capital. That may include vessel acquisitions or new construction.

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