Diana Containerships raising $150m with Kalani Investments deal

Diana Containerships is the latest Greek shipowner to raise money by issuing new shares to little-known Kalani Investments.

Diana said the sale of 3,000 newly-designated series B-1 convertible preferred shares, preferred warrants to purchase 6,500 series B-1 convertible preferred shares and preferred warrants to purchase 140,500 newly-designated series B-2 convertible preferred shares will raise $150m.

The funds will be used for general corporate purposes and/or to repay indebtedness under existing credit facilities.

The announcement wasn’t well received by investors who sent Diana Containerships shares down over 28% on the Nasdaq yesterday to $1.64.

Kalani Investments invested in George Economou’s DryShips in several similar deals in recent months. Despite speculation suggesting that Kalani is run by Economou himself, DryShips has declared Kalani to be an unaffiliated company.

Kalani, which was founded in 1996 and based in the British Virgin Islands, has also invested in Greek tanker owner Top Ships.