DryShips Closes New Revolving Facility from Sifnos
DryShips Inc has signed definitive documentation with Sifnos Shareholders Inc for the previously announced refinancing of the majority of its outstanding debt under the new senior secured revolving facility.
Under the terms of the New Revolver, Sifnos has extended a new loan of up to $200 million that is secured by all of the Company's present and future assets except the MV Raraka.
The New Revolver carries an interest rate of Libor plus 5.5%, is non-amortizing, has a tenor of 3 years, has no financial covenants and was arranged with a fee of 2.0%. In addition, Sifnos has the ability to participate in realized asset value increases of the collateral base in a fixed percentage of 30%.
Following the closing of the New Revolver the below reflects the balances as of December 31, 2016: Total cash: $76.8 million, Total debt: $137.5 million, Available undrawn liquidity under the New Revolver: $79.0 million.
The transaction was approved by the Company's independent members of the board and a fairness opinion was obtained in connection with this transaction.
George Economou, Chairman and Chief Executive Officer commented: "We are pleased to have now completed the restoration of our balance sheet. With total available liquidity of $155.8 million we are now ready to begin looking at acquisition opportunities in all of the shipping sectors including drybulk vessels, tankers, and gas carriers, as the opportunities arise."
The Company owns a fleet of 13 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.0 million tons, and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.
