China Eximbank contributes $9.5 million USD to $13.51 million USD loan for acquisition of Maera shipping vessel

On May 10, 2016, Wake Shipping Company Inc. — a special purpose vehicle legally incorporated in the Republic of the Marshall Islands and wholly-owned subsidiary of shipping company Diana Shipping Inc. — entered into a $13.51 million USD term loan agreement with DNB Bank ASA and China Eximbank, of which China Eximbank committed $9,457,000 USD and DNB committed $4,053,000 USD. The loan was for the purchase of the Maera, formerly 'Manzoni', a vessel acquired from United Bulk Carrier International S.A., Luxembourg. The total loan was payable in seven equal consecutive quarterly installments of $19,775 USD each, four equal consecutive quarterly installments of $282,500 USD each, and a balloon payment of $12.2 million USD payable together with the last installment on January 4, 2019. In terms of China Eximbank's commitment, the borrower was to repay its part of the loan in 11 consecutive quarterly installments, the first 7 of which being in the amount of $19,775 USD each and the next 4 of which being in the amount of $197,750 USD each, and a balloon payment in the amount of $8,527,575 USD. The first repayment installment in respect of the China Eximbank commitment shall be repaid on July 5, 2016, with the remaining repayment installments to be repaid at 3-month intervals thereafter. The loan bore interest at LIBOR (0.933%, the US LIBOR 6-month average of May 2016) plus a margin of 3% per annum, calculated to be 3.933%. In 2018, and according to the terms of the loan agreement, Diana Shipping Inc. prepaid an additional amount of $360,417 USD which was deducted from the balloon payment. The loan was fully repaid on January 4, 2019. The Maera was delivered in May 2016.

Additional details

1. The loan agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1318885/000091957417002154/d7413704_ex4-28.htm.

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