DryShips Inc., a diversified owner of ocean going cargo vessels, announced that it has reached an agreement with Sifnos Shareholders Inc. (“Sifnos”), an entity controlled by the Company’s Founder, Chairman and Chief Executive Officer, Mr. George Economou, to amend the Revolving Facility Agreement with Sifnos.
As part of the amendment, the Sifnos Facility will cease to be secured by all of the Company’s present and future assets, and the maturity will be extended from 3 years to 5 years. The previously announced ability of Sifnos to participate in realized asset value increases of the collateral base in a fixed percentage of 30% will be maintained and will now be documented under a separate contract. Sifnos will receive an amendment fee of $2.0 million and the margin over LIBOR of the Sifnos Facility will be increased by 100bps to 650bps.
The transaction was approved by the independent members of the Company’s board of directors, and a fairness opinion was obtained in connection with this transaction.
Mr. Anthony Kandylidis, the Company’s President and Chief Financial Officer commented:
“We are very excited by the commitment shown by Mr. George Economou to free up collateral which will assist DryShips in its efforts to access bank debt financing for the first time since November 2014. This should increase our available liquidity and allow us to pursue further acquisitions.”