Diana Shipping Bulks Up Fleet By Acquiring Nine Vessels For $330M

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  • Diana Shipping Inc DSX has agreed to acquire nine modern ultramax dry bulk vessels built between 2015 and 2018, with an average vessel age of ~5.4 years, from Sea Trade Holdings Inc.
  • The company expects vessel deliveries to occur during the fourth quarter of 2022.
  • DSX will acquire the nine vessels for an aggregate purchase price of $330 million, comprising $220 million in cash and $110 million in the form of 18.48 million newly issued DSX common shares at $5.95 per share.
  • DSX held cash and equivalents of $130.34 million as of June 30, 2022.
  • The company intends to fund the cash portion of the consideration with available cash on hand. It is currently negotiating terms of a new credit facility with a major European lender, the proceeds of which will be used to fund the balance of the cash purchase price.
  • DSX plans to issue the common shares upon the closing of each vessel delivery.
  • After giving effect to the delivery of the nine vessels and upon completion of the previously announced sale of the m/v Baltimore, DSX's fleet will consist of 43 dry bulk vessels. 
  • Price Action: DSX shares are trading higher by 1.02% at $5.97 on the last check Thursday.
  • Photo Via Company
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