Bank of China Ningxia Branch contributes $10 million to $122.58 million syndicated loan for the acquisition of Fakarava, Rangiroa, and Rangiroa shipping vessels (Linked to Record ID#66432 and #66434)

Project narrative

On February 14, 2012, China Development Bank Ningxia Branch (CDB), the Ningxia Branch of Bank of China (BOC) and the Zhejiang Branch of BOC entered into a $122,580,000 loan agreement with Ocean View Owners Limited, Oceansurf Owners Limited, and Oceancentury Owners Limited, which are special purpose vehicles that are legally incorporated in the Republic of the Marshall Islands. This loan was intended to finance the acquisition of three vessels made by Shanghai Jiangnan-Changxing Shipbuilding Company Limited: H1227 named Fakarava; H1228 named Rangiroa; and H1229 named Negonego. CDB was the mandated lead arranger and BOC was the coordinating mandated lead arranger of the loan. The loan was guaranteed by Dryships Inc. and Cardiff Marine Inc. CDB committed $104,193,000 (as captured via Record ID#66432). The Ningxia Branch of BOC committed $10,000,000 (as captured via Record ID#66433). The Zhejiang Branch of BOC committed $8,387,000 (as captured via Record ID#66434). The loan carried an interest rate of 6-month LIBOR plus a 3.25% margin and a default interest rate of 1.5%. The borrowers were obligated to repay each ship loan in 48 repayment installments, each falling at three monthly intervals after the delivery date of the ship associated with that ship loan up to and including the date falling 144 months after such delivery date. On March 4, 2010, Shanghai Jiangnan-Changxing Shipbuilding Company, Limited entered into shipbuilding contracts of the three ships with Ocean View Owners Limited, Oceansurf Owners Limited, and Oceancentury Owners Limited. Fakarava was delivered on September 10, 2012, Negonego on May 23, 2013, and Rangiroa on June 18, 2013. On May 29, 2014, Dryships Inc. entered into a supplemental agreement to the loan agreement dated February 14, 2012 to amend certain definitions. On March 24, 2016, Dryships Inc. concluded a new sales agreement for the sale of Rangiroa, Negonego, and Fakarava, along with the associated debt, which had an outstanding balance of $102.1 million on that date. On March 30, 2016, Dryships Inc. received CDB and BOC's consent for the sale of the vessels and made a prepayment of $15 million under the respective loan agreement. On March 31, 2016, the shares of the vessel owning companies were delivered to their new owners.