DryShips Announces Major Business Updates, Shares Hit New 52-Week Lows

Shares of DryShips Inc. DRYS plunged more than 7 percent on Tuesday and hit a new 52-week low of $1.91 after the company announced several business updates. DryShips said that it sold 3 of its vessels, including the Fakarava, Rangiroa and Negonego and the associated bank debt, to entities controlled by the Company's Chairman and CEO, George Economou. The company noted the vessels were sold at a fair market value and resulted in a $102.1 million reduction in its bank debt which currently stands at $213.7 million. In a separate transaction, DryShips sold its entire stake in Ocean Rig UDW Inc ORIG for $49.9 million to an unrestricted subsidiary of Ocean Rig. The company stated that it will use the proceeds to reduce the outstanding amount under its revolving credit facility which was provided by a company controlled by Economou. In addition, DryShips reached an agreement under the Revolver in which the lender agreed to release its lien over the Ocean Rig shares and waive any events of defaults. Ziad Nakhleh, Chief Financial Officer of the Company, commented: "We are pleased to have reached a preliminary agreement with one of our lenders to waive any events of default and we hope that the rest of the lenders follow suit, recognizing the pro-active approach of the Company to reduce its debt burden and cash flow burn.