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Long-term debt | 6 Months Ended
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Jun. 30, 2023
Long-term debt |
Long-term debt | 5. 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 Total long-term debt $ 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 , the Company issued a $ 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 principal amount of the bond. The bond bears interest at a US Dollar fixed-rate coupon of 8.375 % and is payable semi- annually in arrears in June and December of each year. The bond is callable in whole or in part in June 2024 at a price equal to 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 . In this 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 extinguished of $ 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 and $ 21,000 , respectively and are 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 under a secured loan agreement, to finance part of the acquisition cost of the G. P. Zafirakis and the P. S. Palios 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 and a balloon of $ 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 and $ 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 drew down $ 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 equal quarterly instalments of $ 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 acquisition price of 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 amount of $ 3,719 , and a balloon of $ 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 the amount of $ 52,885 to combine two loans outstanding with ABN. Tranche A was repayable in consecutive quarterly instalments of $ 800 each and a balloon instalment of $ 9,000 payable together with the last instalment on June 28, 2024 . The tranche bore interest at LIBOR plus a margin of 2.25 %. Tranche B was repayable in equal consecutive quarterly instalments of about $ 994 each and a balloon of $ 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 instalments of $ 1,980 and a balloon of $ 13,553 payable together with the last instalment, on May 20, 2026 . The loan bore interest at LIBOR plus a margin of 2.15 % per annum, 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 , which were refinanced 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 under a secured loan agreement, which is repayable in equal quarterly instalments of $ 954 , each, until its maturity on January 4, 2032 and bears interest at LIBOR plus a margin of 2.3 % (Note 12). DNB Bank ASA or DNB: On March 14, 2019, the Company drew down $ 19,000 under a secured loan agreement, which is repayable in consecutive quarterly instalments of $ 477.3 and a balloon of $ 9,454 payable together with the last instalment on March 14, 2024 . The loan bore interest at LIBOR plus a margin of 2.4 %. On March 14, 2023, the outstanding balance of the loan amounting to $ 11,841 was 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 equal quarterly instalments of $ 3,846 until December 27, 2029, 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 , being 30 % of the loan amount and quarterly amortization of $ 1,154 . Under the interest rate swap, the Company pays a fixed rate of 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 Danish, for $ 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 which is repayable in twenty equal consecutive quarterly instalments of $ 3,301 each and a 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 Year 6 and thereafter 37,388 Total $ 542,849

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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