Owner of dry bulk carriers and offshore support vessels DryShips Inc., has reached an agreement with an entity controlled by DryShips’ founder and chairman George Economou, for the refinancing of the majority of its outstanding debt through a new revolving facility.
Under the terms of the new senior secured revolver, Sifnos Shareholders Inc. will extend a new loan of up to USD 200 million secured by all of the company’s present and future assets except the MV Raraka which will continue to be financed by its existing commercial lender.
The transaction was approved by the company’s independent members of the board and a fairness opinion was obtained in connection with this transaction.
DryShips also expects to enter into new agreements with TMS Bulkers Ltd. and TMS Offshore Services Ltd., entities controlled by Economou, to streamline the services offered by its managers as of January 1, 2017. The all-in base cost for providing the increased scope of services will be reduced to USD 1,644/day per vessel, that is a 33% reduction from current levels, basis a minimum of 20 vessels, decreasing thereafter to USD 1,500/day per vessel, the company said.
Lastly, the company’s Board of Directors has appointed Anthony Kandylidis as President and Chief Financial Officer and Dimitris Dreliozis as Vice President, Finance.
Anthony Kandylidis, President and Chief Financial Officer, said: “We appreciate the support shown by our Founder to restore our balance sheet. Following the closing of our successful equity offering and putting the New Revolver in place, we will have total available liquidity of between $119.0 million and 129.0 million that will not only give us comfort to fund operations but also gives us the opportunity to evaluate the possible acquisition of assets at distressed values. We believe that given where we are in the cycle in both the tanker and drybulk markets, we are faced with a unique entry point to acquire vessels in these sectors at historic low prices.”
DryShips owns a fleet of 13 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1 million tons, and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.