Dryships, Covenant Waiver & Load Deferral
DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced on Feb. 3 that it has reached an in principle agreement with Piraeus Bank, to restructure its two loan facilities in the original aggregate principal amount of $220m with current outstanding $164.9m.
As part of the restructuring, caused in large part by the failure of certain buyers to conclude the agreed purchase of three vessels, the basic terms will provide for: a waiver regarding financial and asset coverage covenants through January 1, 2011; an increased applicable margin; an amendment fee; rescheduling the loan principal amortization by reducing the principal repayments by about 47% and 21% in 2009 and 2010, respectively, and reducing the tenor of the loan. The agreement is preliminary and is subject to execution of definitive documents, providing, inter alia, for substantial reduction of the loan should the three vessels be disposed, and formal approval by Piraeus Bank’s Credit Committee.