zoomImage Courtesy: Diana Shipping

Greek dry bulk ship owner Diana Shipping has signed three Memoranda of Agreement to acquire three Panamax vessels from a related party for a price tag of USD 39.8 million.

The agreements include a 2010 built Panamax dry bulk vessel of 75,700 dwt MV Sunshine, a 2013 built Panamax dry bulk vessel of 75,403 dwt MV Manzoni, and a 2013 built Panamax dry bulk vessel of 77,901 dwt MV Infinity 9.

The vessels, built by China-based Jiangnan Shipyard (Group), are expected to join Diana Shipping’s fleet by the end of March 2016.

Consummation of the purchases is subject to the company obtaining bank financing from the sellers’ existing lenders for substantially all of the purchase price of the vessels.

“Not only has the company been able to negotiate the purchase of these vessels at “distressed” prices not seen during the past 15 years, but we believe that our strong balance sheet and attractive credit risk will enable us to negotiate extremely favorable financing terms with the current lenders to finance 100% of the purchase price that will be non-amortizing for two years,” President of Diana Shipping, Anastasios Margaronis, said.

“By preserving available cash, the company will maintain its strong balance sheet to weather the continuing downturn in the dry bulk market and to fund future vessel acquisitions throughout the eventual market recovery, consistent with the company’s long term strategy,” Margaronis added.

Diana Shipping Inc.’s fleet currently consists of 43 dry bulk vessels, excluding the three vessels, as well as one newbuilding Newcastlemax dry bulker, a newbuilding Newcastlemax dry bulker and a newbuilding Kamsarmax dry bulk vessel expected for delivery by the end of 2016.