Diana Containerships Launches USD 150 Mln Securities Offering
Diana Containerships, a global shipping company specializing in the ownership of containerships, announced today that the Company has entered into a Securities Purchase Agreement with Kalani Investments, an entity organized in the British Virgin Islands (Kalani) that is not affiliated with the Company, for the sale of 3,000 newly-designated Series B-1 Convertible Preferred Shares, preferred warrants to purchase 6,500 Series B-1 Convertible Preferred Shares and preferred warrants to purchase 140,500 newly-designated Series B-2 Convertible Preferred Shares.
The B-1 Convertible Preferred Shares, the Series B-1 Preferred Warrants (and the Series B-1 Preferred Stock issuable upon exercise of such warrants) will be issued to Kalani through a registered direct offering pursuant to a Form F-3 shelf registration statement the Company currently has on file with the U.S. Securities & Exchange Commission (SEC).
The Series B-2 Preferred Warrants will be issued to Kalani in a private placement pursuant to Regulation S and the Series B-2 Preferred Stock issuable upon exercise of the Series B-2 Preferred Warrants shall be registered for issuance by the Company after the closing in accordance with registration rights set forth in the definitive documentation.
The gross proceeds from the sale of the 3,000 Series B-1 Convertible Preferred Shares will be approximately US$3.0 million. The company may further receive an aggregate of US$6.5 million if all of the Series B-1 Preferred Warrants are exercised and further receive an aggregate of US$140.5 million if all of the Series B-2 Preferred Warrants are exercised, for total proceeds of US$150.0 million.
The Company intends to use the net proceeds from the sale of the offered securities for general corporate purposes and/or to repay indebtedness under one or more of our existing credit facilities, although the Company has no present agreements to do so.
