DryShips Inc. announced yesterday that it has signed an agreement with Deutsche Schiffsbank on waiver terms for two facilities with an aggregate of $117.5 million.
DryShips Inc., a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced yesterday that it has signed an agreement with Deutsche Schiffsbank on waiver terms for two facilities with an aggregate of $117.5 million of its outstanding debt. George Economou, Chairman and Chief Executive Officer, commented: "I am delighted to report that with the signing of the Deutsche Schiffsbank waiver, we have now obtained all the necessary waivers for all of our outstanding debt. This resolves all cross default issues and is expected to result in the normal classification of our long term debt on our balance sheet. We would like to thank our banks for being extremely supportive of the company. DryShips is in a strong position to take advantage of the distressed opportunities that are emerging from banks, shipyards and other sources."
Announces $300 Million Convertible Senior Notes Offering
DryShips Inc. also announced that it has commenced a public offering of $300 million aggregate principal amount of convertible senior notes. The underwriter for the offering will also have the option to purchase up to $45 million principal amount of additional notes solely to cover any over-allotments. The Company intends to use the proceeds from the offering for vessel acquisitions, working capital and other general corporate purposes.
Concurrently with the offering of the convertible notes, the Company intends to enter into a share lending agreement with Deutsche Bank AG, London Branch ("Deutsche Bank AG"), under which it will loan to Deutsche Bank AG shares of its common stock having a market value of approximately $150 million. The Company also intends to enter into an equity underwriting agreement with Deutsche Bank Securities Inc. pursuant to which Deutsche Bank AG or its affiliates intend to sell shares of the Company's common stock that they will be entitled to borrow from the Company under the share lending agreement. These shares will be offered in an underwritten offering registered under the Securities Act of 1933, as amended, pursuant to the Company's existing shelf registration statement in order to facilitate hedging transactions undertaken by the purchasers of the convertible notes. The Company will not receive any of the proceeds from this sale of common stock but will receive a nominal lending fee from Deutsche Bank AG under the share lending agreement. Deutsche Bank AG will generally be required to return the borrowed shares on or about the maturity of the convertible notes or, if earlier, upon the conversion, repurchase, cancellation or redemption of all of the convertible notes and upon the occurrence of certain other events. The delivery of common stock pursuant to the share lending agreement will be contingent upon the closing of the convertible notes offering, and the closing of the convertible notes offering will be contingent upon the delivery of common stock pursuant to the share lending agreement.
Deutsche Bank Securities Inc. is acting as Sole Book-running Manager for the offerings.