ATHENS, Greece, Jan. 11, 2016 /PRNewswire/ -- Paragon
Shipping Inc. (the "Company") announced that it has entered into an
agreement to sell M/V Kind Seas for a cash consideration of
$3.5 million to an unaffiliated third
party and the delivery of the vessel was concluded on January 8, 2016.
The Company has also agreed with Bank of Ireland to apply the total net proceeds from
the sale of M/V Kind Seas towards an immediate prepayment of the
loan facility. The remaining principal amount of $4.4 million shall be treated as follows: a)
$2.2 million shall be written-off
subject to certain conditions and b) $2.2
million, plus any accrued interest, was converted into an
unsecured paid-in-kind note ("PIK Note"). The PIK Note will be
non-amortizing and will have a maturity date of December 31, 2020, at which time it will be
repaid at par. Interest on the PIK Note will accrue on a quarterly
basis at an interest rate equal to the aggregate of 2.5% and the
applicable LIBOR, and will be treated as payment-in-kind. The
Company has the option to convert the PIK Note into its Class A
common shares, subject to certain conditions, partially or wholly,
at any time until the maturity date and based on the twenty-day
average closing price of the Company's shares immediately prior to
the conversion date.
Mr. Michael Bodouroglou,
Chairman, President and Chief Executive Officer of the Company,
commented: "We are pleased to announce the above transaction that
improves considerably our cash flow. Also, the ability to write-off
a portion of the loan improves further the overall leverage of the
Company. We remain committed to take any appropriate actions that
preserve our liquidity in these extremely adverse market
conditions."
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company
incorporated under the laws of the Republic of the Marshall Islands with executive offices in
Athens, Greece, specializing in
the transportation of drybulk cargoes. Paragon Shipping's current
fleet consists of nine drybulk vessels with a total carrying
capacity of 519,300 dwt. In addition, Paragon Shipping's current
newbuilding contracts consist of two Ultramax and three Kamsarmax
drybulk carriers with scheduled deliveries in the first quarter of
2016. The Company's common shares and senior notes trade on the
NASDAQ Capital Market under the symbols "PRGN" and "PRGNL,"
respectively. For more information, visit: www.paragonship.com. The
information contained on Paragon Shipping's website does not
constitute part of this press release.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy
Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
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SOURCE Paragon Shipping Inc.