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Long-term debt
 6 Months Ended
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