Long-term debt |
The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows: June 30, 2023 December 31, 2022 Senior unsecured bond 119,100 125,000 Secured long-term debt 423,749 405,120 $ 542,849 $ 530,120 Less: Deferred financing costs (7,526) (7,609) Long-term debt, net of deferred financing costs $ 535,323 $ 522,511 Less: Current long-term debt, net of deferred financing costs, current (49,428) (91,495) Long-term debt, excluding current maturities $ 485,895 $ 431,016 Senior Unsecured Bond On June 22, 2021 125,000 senior unsecured bond maturing in June 2026. The bond ranks ahead of subordinated capital and ranks the same with all other senior unsecured obligations of the Company other than obligations which are mandatorily preferred by law. Entities affiliated with executive officers and directors of the Company purchased an aggregate of $ 21,000 the bond. The bond bears interest at a US Dollar fixed-rate coupon of 8.375 annually in arrears in June and December of each year. The bond is callable in whole or in part in June 103.35 % of nominal value; between June 2025 to December 2025 at a price equal to 101.675 % of nominal value and after December 2025 at a price equal to 100 % of nominal value. On June 29, 2023, the Company repurchased $ 5,900 nominal value of the bond for $ 5,851 respect, the Company recognized an amount of $ 159 as loss on debt extinguishment, representing the difference between the reacquisition price of $ 5,851 and the net carrying amount of the debt being 5,900 less deferred financing fees of $ 208 . The bond includes financial and other covenants and is trading at Oslo Stock Exchange under the ticker symbol “DIASH02”. Secured Term Loans: Under the secured term loans outstanding as of June 30, 2023, 33 vessels of the Company’s fleet are mortgaged with first preferred or priority ship mortgages, having an aggregate carrying value of $ 714,222 . Additional securities required by the banks include first priority assignment of all earnings, insurances, first assignment of time charter contracts that exceed a certain period, pledge over the shares of the borrowers, manager’s undertaking and subordination and requisition compensation and either a corporate guarantee by DSI (the “Guarantor”) or a guarantee by the ship owning companies (where applicable), financial covenants, as well as operating account assignments. The lenders may also require additional security in the future in the event the borrowers breach certain covenants under the loan agreements. The secured term loans generally include restrictions as to changes in management and ownership of the vessels, additional indebtedness, as well as minimum requirements regarding hull cover ratio and minimum liquidity per vessel owned by the borrowers, or the Guarantor, maintained in the bank accounts of the borrowers, or the Guarantor. As of June 30, 2023 and December 31, 2022, minimum cash deposits required to be maintained at all times under the Company’s loan facilities, amounted to $ 20,500 21,000 included in “Restricted cash, non-current” in the accompanying consolidated balance sheets. Furthermore, the secured term loans contain cross default provisions and additionally the Company is not permitted to pay any dividends following the occurrence of an event of default. As of June 30, 2023, the Company had the following agreements with banks, either as a borrower or as a guarantor, to guarantee the loans of its subsidiaries: BNP Paribas (“BNP”): On December 19, 2014, the Company drew down $ 53,500 agreement, to finance part of the acquisition cost of the maturing on November 30, 2021 . The agreement was refinanced on June 29, 2020, to extend the maturity to May 19, 2024 . The loan was repayable in equal semi-annual instalments of approximately $ 1,574 $ 23,596 payable together with the last instalment. The refinanced loan bore interest at LIBOR plus a margin of 2.5 On July 16, 2018, the Company drew down $ 75,000 under a secured loan agreement with BNP. The loan was repayable in consecutive quarterly instalments of $ 1,562.5 and a balloon instalment of $ 43,750 payable together with the last instalment on July 17, 2023 . The loan bore interest at LIBOR plus a margin of 2.3 In April 2023, both loans were refinanced through a new loan facility with Danish Ship Finance and the outstanding balance of both loans, amounting to $ 75,193 was prepaid in full and the Company recorded a loss on debt extinguishment amounting to $ 107 . Nordea Bank AB, London Branch (“Nordea”): On March 19, 2015, the Company drew down $ 93,080 under a secured loan agreement, maturing on March 19, 2021 . The loan agreement was amended on May 7, 2020, and supplemented on July 29, 2021, with an additional borrowing of $ 460 . In July 2022 and in February 2023, the Company prepaid an amount of $ 4,786 8,134 , respectively, following the sale of vessels. On June 20, 2023, the Company entered into a new loan agreement with Nordea to refinance the outstanding balance of the existing loan amounting to $ 20,934 . On June 27, 2023, the Company 22,500 and prepaid in full the outstanding balance of $ 20,934 and recorded a loss on debt extinguishment amounting to $ 220 . The new loan is repayable in twenty quarterly $ 1,125 and bears interest at term SOFR plus a margin of 2.25 %. The loan matures on June 27, 2028 . On September 30, 2022, the Company entered into a $ 200 million loan agreement to finance the 9 Ultramax vessels. The Company drew down $ 197,236 under the loan, in tranches for each vessel on their delivery to the Company, but prepaid $ 21,937 in December 2022 due to a vessel sale and leaseback transaction. The loan is repayable in equal quarterly instalments of an aggregate 3,719 100,912 payable together with the last instalment on October 11, 2027 . The loan bears interest at term SOFR plus a margin of 2.25 %. ABN AMRO Bank N.V., or ABN: On May 22, 2020, the Company signed a term loan facility with ABN, in 52,885 to combine two loans outstanding with ABN. Tranche A was repayable in consecutive quarterly 800 each and a balloon instalment of $ 9,000 June 28, 2024 . The tranche bore interest at LIBOR plus a margin of 2.25 %. Tranche B was repayable in equal consecutive quarterly 994 $ 13,391 payable together with the last instalment on June 28, 2024 , and bore interest at LIBOR plus a margin of 2.4 On May 20, 2021, the Company, drew down $ 91,000 under a secured sustainability linked loan facility with ABN AMRO Bank N.V, dated May 14, 2021, which was used to refinance existing loans. In August 2022, the Company prepaid $ 30,791 due to vessel sale and leaseback transactions and since then, the loan was repayable in quarterly 1,980 13,553 payable together with the May 20, 2026 . The loan bore interest at LIBOR plus a margin of 2.15 which could be adjusted annually by maximum 10 basis points upwards or downwards, subject to the performance under certain sustainability KPIs. On June 26, 2023, the Company prepaid in full both loans amounting to $ 68,678 under a new loan agreement with DNB Bank ASA and the Company recorded a loss on debt extinguishment amounting to $ 237 . Export-Import Bank of China: On January 4, 2017, the Company drew down $ 57,240 loan agreement, which is repayable in equal quarterly 954 , each, until its maturity on January 4, 2032 and bears interest at LIBOR plus a margin of 2.3 % (Note 12). On March 14, 2019, the Company drew down $ 19,000 agreement, which is repayable in consecutive quarterly 477.3 9,454 payable together with the last instalment on March 14, 2024 . The loan bore interest at LIBOR plus a 2.4 %. On March 14, 2023, the outstanding balance of the loan amounting to $ 11,841 prepaid in full and the Company recorded a loss on debt extinguishment amounting to $ 25 . On June 26, 2023, the Company entered into a $ 100,000 loan agreement which was drawn on June 27, 2023, to refinance the outstanding balance of the ABN loans mentioned above and for working capital purposes. The loan is repayable in 26 quarterly 3,846 and bears term SOFR plus a margin of 2.2 %, subject to sustainability margin adjustment. Additionally, the loan is subject to a margin reset, according to which the borrowers and the lenders will enter into discussions to agree on a new margin. Unless the parties agree on a new margin, the loan will be mandatorily repayable on June 27, 2027. As part of the loan agreement, on July 6, 2023, the Company entered into an interest rate swap with DNB for a notional amount of $ 30,000 30 amount and quarterly amortization of $ 1,154 . Under the interest rate swap, the Company pays a fixed 4.268 % and receives floating under term SOFR, has a trade date on June 27, 2023, and termination date on December 27, 2029, and also has a mandatory break on June 27, 2027, the margin reset date of the loan, according to which the swap will be terminated if the loan is prepaid. Danish Ship Finance A/S or Danish: On April 12, 2023, the Company signed a term loan facility with 100,000 to refinance the outstanding balance of the Company’s loans with DNB Bank ASA and BNP, mentioned above and working capital. On April 18 and 19, 2023, the Company drew down $ 100,000 twenty quarterly 3,301 balloon of $ 33,972 payable together with the last instalment on April 19, 2028 , and bears interest at term SOFR plus a margin of 2.2 As of June 30, 2023 and December 31, 2022, the Company was in compliance with all of its loan covenants. As of June 30, 2023, the maturities of the Company’s bond and debt facilities throughout their term, are shown in the table below and do not include the related debt issuance costs. Period Principal Repayment Year 1 $ 51,783 Year 2 51,783 Year 3 170,883 Year 4 51,783 Year 5 179,229 37,388 Total $ 542,849
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