Diana Shipping agrees to loan up to $50M to Diana Containerships

Diana Shipping (DSX) announced that yesterday it agreed to loan up to $50M to Diana Containerships (DCIX), a former wholly-owned subsidiary of the company of which Diana Shipping currently owns approximately 10.4% of the issued and outstanding common shares. Under the terms of the loan agreement, one or more wholly-owned subsidiaries of Diana Containerships may borrow amounts under the loan to fund vessel acquisitions and for general corporate purposes. The loan matures on the fourth anniversary of the initial draw down date, and amounts drawn under the loan will bear interest at the rate of LIBOR plus 5.0% per annum. In addition, the borrower will pay the Company a variable back-end fee in an amount of up to 5.0%, in the aggregate, of the total amount outstanding under the loan.