DryShips Converts Debt into Shares

Greece-based owner of drybulk carriers and offshore support vessels DryShips has agreed with Sifnos Shareholders to convert USD 8.75 million of outstanding principal amount under the previously announced secured revolving facility deal to 3.5 million preferred shares.

The company said that each preferred share will have 100,000 votes. In addition, Sifnos has agreed to provide a 90 day waiver of any defaults under its revolver.

On September 9, 2016, the company delivered the 2000-built bulk carrier MV Coronado to its new owners. The 75,700 dwt vessel, featuring a length of 225 meters and a width of 32.2 meters, was sold for a gross price of USD 4.25 million.

DryShips said that all of the net proceeds from the sale were used to pay down the relevant loan facility.

“We are pleased to see our founding shareholder actively supporting the company in a way that is not dilutive to the rest of our shareholders. As we continue our discussions with our lenders, we hope that they will now also make the necessary compromises to restructure the company’s debt to more sustainable levels,” Anthony Kandylidis, Executive Vice President and interim CFO of the Company, said.

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