China Development Bank Grants Paragon Credit Facility

Press Release
Tuesday, May 21, 2013

Greece's Paragon Shipping Inc. obtains a $69-million credit facility with China Development Bank  to partially finance its two 4,800 TEU containerships currently under construction.

The two container ships on order are expected to be delivered in the second quarter of 2014, and the company has granted an option to its subsidiary, Box Ships Inc., until its initial public offering in 2011, to acquire the vessels at any time prior to their delivery to Paragon Shipping.

The CDB Credit Facility, which is available for drawdown upon the delivery of the vessels subject to certain contingencies and conditions, will be used to finance the lower of 60% of the construction cost of the vessels, or 80% of the vessels' market value at delivery. The facility matures ten years after the drawdown date. Under the terms of the credit facility, amounts borrowed will bear interest at LIBOR, plus a margin of 4.00%. The financial covenants and other conditions contained in the CDB Credit Facility are similar to the ones contained in the Company's existing credit facilities. In addition, this facility can be freely transferred to Box Ships Inc. if Box Ships decides to declare its option to acquire these vessels before their delivery.

In addition, the Company has agreed with the syndicate led by Nordea Bank Finland Plc, subject to definitive documentation, to remove the condition precedent under which drawdown of the loan is subject to the prepayment of the Company's loan outstanding to Box Ships Inc. from our syndicated secured loan facility entered into between the Company and Nordea, as Agent.

Commenting on the developments, our Chairman and CEO, Michael Bodouroglou stated, "We are very pleased to start a new relationship with China Development Bank, and appreciate the continuous support of our existing lenders."


Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MARAD Backs Emissions Reduction Projects

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced it will provide more than $1 million to support the development of two new emission-reducing maritime solutions.

Michelle Obama to Christen Navy's Newest Submarine

U.S. First Lady Michelle Obama will join builder General Dynamics Electric Boat, a wholly owned subsidiary of General Dynamics, in christening Illinois (SSN-786), the U.

Becker Marine, Kotug Sign MOU for LNG Hybrid Barge

Press release - Becker Marine Systems and KOTUG signed a Memorandum of Understanding to launch a LNG Hybrid Barge in the Port of Rotterdam with effect from June 2017.


Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,

Smith Taken on Rolls-Royce Holdings Board

Rolls-Royce Holdings plc today announces the appointment of Sir Kevin Smith CBE as a Non-Executive Director.  Sir Kevin will join the Board with effect from

Container Ships

Baltic Index Slips as Demand Falls

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Monday as demand dropped across all vessel categories.

UASC Expanding its Reefer Business

United Arab Shipping Company (UASC) has confirmed  that its reefer business will continue to expand. Following several initiatives including investment in new reefer units,

USCG: Body Found in Search for Ship Sunk in Hurricane

The U.S. Coast Guard on Monday said its crews had found a body and an empty, heavily damaged lifeboat in their search for the cargo ship El Faro, believed to have

Maritime Contracts Maritime Security Maritime Standards Navigation Port Authority Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2552 sec (4 req/sec)