ATHENS - Diana Shipping Inc . (NYSE:DSX), a global shipping company, announced today the successful completion of a $25 million tap issue under its senior unsecured bond issue due July 2, 2029. After this tap issue, the total outstanding amount under the bonds is now $175 million. The tap issue was priced at 102.00% of par value, following a reverse inquiry from an investor.
The company, which specializes in the ownership and bareboat charter-in of dry bulk vessels, stated that the net proceeds from the tap issue will be utilized for general corporate purposes, in line with the bond's terms. Diana Shipping's fleet is predominantly engaged in short to medium-term time charters, transporting a variety of dry bulk commodities like iron ore, coal, grain, and other materials across global shipping routes.
The press release also included a cautionary note on forward-looking statements, reminding investors that such statements involve risks and uncertainties. The company emphasized that actual results could differ materially from those projected due to various factors, including market conditions, operating expenses, and geopolitical events.
The forward-looking statements were made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which aims to encourage companies to share information about their business prospects.
This announcement is based on a press release statement from Diana Shipping Inc. and does not include any additional commentary or speculation. The information provided is intended to give investors insight into the company's latest financial maneuver without endorsing the company's claims or future prospects.
In other recent news, Diana Shipping Inc. has made significant strides in its business operations. The company successfully secured an $80.2 million loan facility with Danish Ship Finance A/S, aimed at refinancing an existing loan. Diana Shipping also secured new charter contracts with Propel Shipping Pte. Ltd., Cargill Ocean Transportation, Nippon Yusen Kabushiki Kaisha, and Paralos Shipping Pte. Ltd., expected to generate substantial revenue.
Despite a 7% decrease in average time charter rates for Capesize vessels in the second quarter, Panamax and Supramax rates saw an increase of 6% and 16% respectively. The company also declared a quarterly cash dividend of $7.05 per share and reached a fleet utilization of 99.5%.
Diana Shipping has extended a charter contract with Aquavita International S.A. and anticipates the delivery of two methanol dual-fuel new-building Kamsarmax dry bulk vessels in the second half of 2027 and the first half of 2028. These developments are part of the company's strategic approach to navigate the dynamic shipping industry, reflecting a commitment to financial health and shareholder value.
InvestingPro Insights
Diana Shipping Inc.'s recent $25 million tap issue aligns with its financial strategy, as reflected in several key metrics from InvestingPro. The company's impressive gross profit margins, standing at 58.63% for the last twelve months as of Q2 2024, suggest efficient operations in the challenging shipping industry. This efficiency could be a factor in the company's ability to attract investors for the bond tap issue.
InvestingPro Tips highlight that Diana Shipping is trading at a low Price / Book multiple of 0.53, indicating that the stock may be undervalued relative to its assets. This could be particularly relevant given the company's recent capital raise, as it suggests potential for asset appreciation.
Moreover, Diana Shipping pays a significant dividend to shareholders, with a current dividend yield of 13.57%. This high yield, combined with the company's ability to raise additional capital through bonds, demonstrates a balance between rewarding shareholders and maintaining financial flexibility for corporate purposes.
It's worth noting that InvestingPro offers 10 additional tips for Diana Shipping, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for understanding the broader context of Diana Shipping's recent financial moves and future prospects in the shipping industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.