Drybulk specialist DryShips has announced today that it has entered into an agreement to increase its secured revolving facility, provided by an entity controlled by company chairman and CEO George Economou, by an additional $10m to a total of $70m.
The agreement also gives Dryships an option to extend the maturity of the facility by 12 months to October 21, 2019 and cancels the option to convert the outstanding loan to DryShips common stock. DryShips has also entered into a preferred stock exchange agreement to exchange the 4,000,000 series B preferred shares held by the lender for $8.75 million, bringing the outstanding balance under the revolver to $28.75m and the total number of issued and outstanding shares of common stock to 26,881,846.
“We are pleased to have reached this agreement to increase and extend our Revolver which will provide greater financial flexibility for the Company and remove the overhang on our share price the lender’s option to convert to shares of our common stock had created,” commented Ziad Nakhleh, chief financial officer of DryShips.
