Diana Shipping has reached a $167m loan deal with Nordea Bank that will allow it to pay down previous borrowings backed by nearly one-third of its vessels.
The New York-listed bulker owner said the new six-year, secured loan is backed by 10 of its ships and leaves two previously financed vessels unencumbered.
“This strategic financial move underscores the company’s commitment to optimising its capital structure and enhancing operational flexibility,” Diana said.
It did not disclose the interest rate details of the new debt.
The Semiramis Paliou-led outfit immediately drew down the full amount of the loan, which matures in July 2030.
The cash was used to pay off two other loans from Helsinki-headquartered Nordea that had been secured by a dozen vessels.
A $149m loan was due to mature in October 2017, while an $18m loan was due in June 2028.
The move comes roughly a month after Diana, which owns 38 vessels, made another refinancing move by placing $150m worth of unsecured bonds, which were priced at a coupon rate of 8.75% and due in July 2029.
Proceeds from the sale of the debt securities, listed on the Oslo Stock Exchange, were used mostly to refinance $125m in unsecured bonds that were due in 2026.
Diana reported in its last quarterly report that it had just over $628m in long-term debt, net of deferred financing costs.
It reported having $161m in cash and equivalents, out of $1.16bn in total assets.
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