Athens-headquartered Diana Shipping Inc. (NYSE: DSX) has agreed to buy what looks to be the entire fleet of Stamford, Conn., based Sea Trade Holdings, Inc. Announcing the deal, Diana said it has agreed, through separate wholly-owned subsidiaries, to acquire nine modern ultramax dry bulk vessels built between 2015 and 2018, with an average vessel age of approximately 5.4 years, from Sea Trade Holdings Inc. and that vessel deliveries are expected to occur during the fourth quarter of 2022.
$330 MILLION PRICE TAG
Announcing the deal, Diana said it has agreed, through separate wholly-owned subsidiaries, to acquire the nine vessels for an aggregate purchase price of $330 million, of which $220 million will be paid in cash and $110 million in the form of 18,487,395, in aggregate, newly issued common shares in Diana, at a price of US$5.95 per share.
Diana intends to fund the cash portion of the deal with available cash on hand and says 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. The common shares will be issued on the closing of each vessel delivery. Diana Company has agreed to register the common shares consideration to be issued to Sea Trade for resale pursuant to a registration statement to be filed with the SEC.
After taking delivery of the nine vessels and upon completion of a previously announced sale of the M/V Baltimore, Diana Shipping Inc.’s fleet will consist of 43 dry bulk vessels (4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax and 9 Ultramax) with a carrying capacity of approximately 4.9 million dwt.
Seward & Kissel LLP is serving as legal advisor to Diana Shipping Inc.
Evercore is serving as financial advisor and Reed Smith LLP is serving as legal advisor to Sea Trade Holdings Inc.