Paragon Nets Funds for Two Newbuildings

Paragon Shipping, specializing in the transportation of drybulk cargoes, has entered into a new $120 million credit facility, which will be used to partly finance the company’s two Ultramax newbuildings scheduled for delivery in 2015.

The deal was closed with a syndicate of major European banks led by Nordea Bank Finland PLC. Aside to financing of the company’s newbuildings, the loan will be used to refinance several vessels in its operating fleet.

Paragon’s latest six-year facility is subject to the execution of definitive documentation and completes the financing for the company’s Ultramax newbuilding program, leaving only the three recently purchased Kamsarmax newbuildings, that are to be delivered between the second and fourth quarters of 2015, to be financed.

The company’s current fleet consists of fourteen drybulk vessels with a total carrying capacity of 853,699 dwt. In addition, Paragon Shipping’s current newbuilding program consists of two Ultramax drybulk carriers and one 4,800 TEU containership that are scheduled to be delivered in 2014, and two Ultramax drybulk carriers and three Kamsarmax drybulk carriers that are due for delivery in 2015.

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WMN Staff, April 1, 2014