Shares Of Diana Shipping Plunges Following Announcement Of New $75 Million Term Loan Facility

Shares of Diana Shipping Inc. DSX plunged lower by more than 10 percent on Friday and hit a new 52-week low of $3.42.

Investors and traders were likely reacting to Diana Shipping's announcement that it signed 3 separate wholly-owned subsidiaries a term loan facility for up to $75,734,900 with The Export-Import Bank of China.

Diana Shipping stated that the facility will be used to partially finance, after delivery, the acquisition of 2 new-building Newcastlemax dry bulk vessels of approximately 208,500 dwt each and one new-building Kamsarmax dry bulk vessel of approximately 82,000 dwt.

The company noted that the signing of the shipbuilding contracts were announced in May 2013 and January 2014.