Tuesday, December 20, 2011

Two New 3,750 TEU Panamax Container Ships for Diana

Company Also Reveals Finance Arrangements
Shipping News Feature

GREECE - Diana Containerships Incorporated, part owned subsidiary of Diana Shipping announced yesterday that it had agreed to buy two more Panamax container vessels to add to its fleet of box carriers whilst also revealing details of its latest financing arrangements. Both the ships involved can carry around 3,750 TEU, matching the profile of the other vessels in the fleet.

The two ships are believed to be costing $33 million apiece and both are sourced from Reederei Santa Containerschiffe GmbH & Co. KG which company will be chartering back from Diana for the next three years at an average individual net charter rate of $22,950 per day starting on the day of the vessels’ delivery. The two ships the 2001 built m/v Cap San Marco and the m/v Cap San Raphael launched in 2002 are expected to be handed over between the 5th January and the 29th February 2012.

The employment of the two vessels is anticipated to generate approximately US$47.5 million of revenues for the minimum agreed period of the charters. Other vessels in the current Diana Containerships fleet of five similar ships are chartered to Maersk and CSAV. Diana Containerships was launched last year with the intention of operating a fleet of box carriers and adding suitable vessels when investment opportunities arose. Now, at a time when finance is uppermost in everyone’s minds, not least container ship operators, the company has revealed its latest financing initiative.

The company has entered into an agreement for a revolving credit facility of up to US$100 million with The Royal Bank of Scotland plc, which may be increased to US$150 million subject to further syndication. The credit facility has a term of five years and will bear interest at the rate of 2.75% over LIBOR. The Company will also pay a commitment fee of 0.99% per annum on the undrawn amount of the facility.

Photo: One of Diana Containerships current fleet the Maersk Malacca. The brighter line under the vessels name is where her home port registration has been changed to Majuro, one of the Marshall Islands where all company ships are registered.