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 July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

German Shipyard FSG Re-organises Top Management

Flensburger Schiffbau-Gesellschaft (FSG) says it will be headed by a new management team from January 1st 2015, details as follows: Current Chief Technology

Ningpo Port Truckers Strike, Disrupt Freight

Thousands of truck drivers went on strike over salary and haulage rates in the eastern Chinese port of Ningbo this week, and a logistics firm said on Friday the

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

Finance

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

Scotland Site for World's Biggest Tidal Array

The world’s biggest tidal array is to be built in North Scotland bringing jobs and energy security to the Pentland Firth region, informs a UK Government news release.

Container Ships

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

Maersk Line Still the Leading Carrier on Reliability in Q2

During the second quarter, the overall industry reliability has improved. However, Maersk Line is pleased to have improved their performance so that they can

Evergreen Line Makes Maiden Call to Boston

Evergreen Line’s ItalLunare celebrated its maiden call to the Port of Boston with an official first call and plaque presentation on Wednesday, the Massachusetts Port Authority (Massport) announced.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1447 sec (7 req/sec)