Investors have largely shunned Paragon Shipping’s latest offering, with only 18.8% choosing to exchange convertible notes for shares in the NASDAQ-listed company’s common stock.
Paragon had offered to exchange each of its 8.375% senior notes due 2021 for four shares of its common stock, including interest. The offer period expired at the close of business in New York on March 18.
Only 184,721 notes, or around 18.8% of those outstanding, were delivered and not validly withdrawn from the exchange offer, Paragon said.
Separately, Paragon today said it still has not made its $0.5m quarterly cash interest payment, which was due on March 17, following a 30-day grace period. The remittance was originally due on February 16 but could not be made due to a lack of liquidity. The company today gave no further comment on the payment schedule or discussions with its creditors.
Earlier this month, the Athens-based company agreed with its banks to sell off its entire fleet of six bulk carriers in exchange for full and final settlement of its outstanding debt.