Greece: Diana Shipping Enters into Loan Agreement with Diana Containerships

Diana Shipping Inc., a global shipping company specializing in the ownership and operation of dry bulk vessels, has announced that yesterday it agreed to loan up to $50 million to Diana Containerships Inc., a former wholly-owned subsidiary of the Company of which Diana Shipping Inc. currently owns approximately 10.4% of the issued and outstanding common shares.

Under the terms of the loan agreement, one or more wholly-owned subsidiaries of Diana Containerships may borrow amounts under the loan to fund vessel acquisitions and for general corporate purposes. The loan matures on the fourth anniversary of the initial draw down date, and amounts drawn under the loan will bear interest at the rate of LIBOR plus 5.0% per annum. In addition, the borrower will pay the Company a variable back-end fee in an amount of up to 5.0%, in the aggregate, of the total amount outstanding under the loan. The unsecured loan will be guaranteed by Diana Shipping, and Diana Containerships and its subsidiaries may not incur additional indebtedness during the term of the loan without the prior consent of the Company. The loan agreement was approved by a committee of the independent directors of Diana Shipping Inc.

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Diana Shipping, May 22, 2013