Diana Shipping has sold one of its panamax bulk carriers while extending the due date on a secured loan.
The Semiramis Paliou-led bulker owner has signed a memorandum of agreement with "an unaffiliated third party" to sell the 73,593-dwt Arethusa (built 2007) for $7.85m.
Diana Shipping has not disclosed the buyer, but Castor Maritime said it bought a 2007 Chinese-built Panamax dry bulk carrier for $7.85m from an unaffiliated third party seller.
The ship was built by Jiangnan Shanghai Changxing Heavy Industries, according to online ship valuation platform VesselsValue.
Diana Shipping would not confirm the buyer. Calls to Castor Maritime were not immediately returned.
The ship's estimated market value stands at $8.22m and is worth $3.43m in scrap.
The ship's market value is expected to fall to $6.83m next year but return to $8.21m by 2023, according to VesselsValue projections.
New York-listed Diana expects to deliver the ship to its buyer by 31 August.
Larger panamaxes today earn a daily premium of almost $2,000 compared to their smaller counterparts of around 74,000 dwt, much like the Arethusa.
The weighted time charter average rate for 74,000-dwt panamaxes was assessed at $9,979 per day on Tuesday, according Baltic Exchange data.
In comparison, 82,500-dwt panamaxes are earning a weighted time charter average of $11,315 daily, according to the Baltic's assessment.
Diana sold nine panamaxes in 2019 and a capesize in late February, which leaves the Athens-based company with four newcastlemaxes; 13 capesizes, five post-panamaxes, five kamsarmaxes and 14 panamaxes.
The company is interested in selling more of its older ships but in a "staggered manner" to accommodate for market fluctuations, said Ioannis Zafirakis, interim chief financial officer, chief strategy officer, treasurer and secretary.
"We're in a defensive stage, so we are keeping cash", he told TradeWinds.
Some breathing room
Diana has also extended the maturity date on a loan by 2.5 years by signing a supplemental agreement with BNP Paribas.
The due date on the secured loan agreement has been pushed back to 19 May 2024.
The supplementary agreement was signed between the French bank and two subsidiaries that own a pair of Diana's capesizes — the 179,492-dwt GP Zafirakis (built 2014) and 179,134-dwt PS Palios (built 2013).
Debt wiped out to 2022?
Fearnley Securities said: "Assuming proceeds from the contracted sale are used to prepay the related bank facility, DSX [Diana Shipping] has effectively eliminated all its debt maturities throughout 2020 and 2021."
It estimates $6m outstanding.
"Whilst several companies have sought to shore up liquidity through opportunistic refinancing solutions during the crisis, Diana Shipping has benefited from a strong balance sheet and delivered on its conservative strategy by refinancing several bank facilities in due course without adding further debt."
The investment bank said this adds to an otherwise strong credit story including solid credit metrics.
It has more than four times asset coverage from an estimated $229m of bank residuals, $95m from unencumbered vessels and cash of $111m for its $100m bond.
Diana's shares, which trade on the Nasdaq Stock Market under the ticker symbol DSX, slipped 2.3% to $1.52 by late Tuesday morning in New York.
