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Long-term Debt
 6 Months Ended
Jun. 30, 2024
Long-term Debt [Abstract]  
Long-term Debt
8.
 
Long-term debt
The
 
amount of
 
long-term debt
 
shown in
 
the
 
accompanying consolidated
 
balance sheets
 
is
 
analyzed as
follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2024
2023
Senior unsecured bond
119,100
119,100
Secured long-term debt
371,966
397,857
Total long-term
 
debt
$
491,066
$
516,957
Less: Deferred financing costs
 
(5,170)
(6,314)
Long-term debt, net of deferred financing costs
$
485,896
$
510,643
Less: Current long-term debt, net of deferred financing
 
costs,
current
(47,277)
(49,512)
Long-term debt, excluding current maturities
$
438,619
$
461,131
 
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
.
 
The
 
bond
includes
 
financial
 
and
 
other
 
covenants
 
and
 
is
 
trading
 
at
 
Oslo
 
Stock
 
Exchange under
 
the
 
ticker
 
symbol
“DIASH02”.
 
In June 2024, the
 
Company agreed to refinance the
 
bond with a new
 
issue in the amount
 
of $
150
 
million
maturing in 2029 at a fixed rate coupon of
8.75
% (Note 15).
Secured Term Loans:
Under
 
the
 
secured term
 
loans
 
outstanding as
 
of June
 
30,
 
2024,
32
 
vessels of
 
the
 
Company’s
 
fleet
 
are
mortgaged
 
with
 
first
 
preferred
 
or
 
priority
 
ship
 
mortgages,
 
having
 
an
 
aggregate
 
carrying
 
value
 
of
$
673,431
.
 
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,
 
2024
 
and
 
December
 
31,
 
2023
 
minimum
 
cash
 
deposits required
 
to
 
be
 
maintained
 
at
 
all
times
 
under
 
the
 
Company’s
 
loan
 
facilities,
 
amounted
 
to
 
$
19,500
 
and
 
$
20,000
,
 
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, 2024, the Company had the following agreements with banks, either as a borrower or as a
guarantor, to guarantee the loans of its subsidiaries:
Nordea Bank
 
AB, London
 
Branch (“Nordea”):
 
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
%.
 
On June 27, 2023, the Company drew down $
22,500
 
to refinance the balance of a previous loan with the
bank.
 
The
 
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
.
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 term SOFR plus a margin of
2.45
%.
DNB
 
Bank
 
ASA
 
or
 
DNB:
 
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. As of
 
June 30, 2024
 
and December 31,
 
2023, the fair
 
value of the
 
interest rate swap
 
amounted
to
 
$
78
 
and
 
$
439
,
 
respectively,
 
and
 
is separately
 
presented in
 
current assets
 
and non-current
 
liabilities.
For
 
the
 
six
 
months
 
ended
 
June
 
30,
 
2024,
 
gain
 
from
 
the
 
interest
 
rate
 
swap
 
amounted
 
to
 
$
361
 
and
 
is
separately
 
presented
 
as
 
gain
 
on
 
derivative
 
instruments
 
in
 
the
 
2024
 
accompanying
 
unaudited
 
interim
consolidated statement of comprehensive income/(loss).
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,
 
2024
 
and
 
December
 
31,
 
2023,
 
the
 
Company
 
was
 
in
 
compliance
 
with
 
all
 
of
 
its
 
loan
covenants.
As of
 
June 30,
 
2024, the
 
maturities of
 
the Company’s
 
bond and
 
debt facilities
 
throughout their
 
term, are
shown
 
in
 
the
 
table
 
below
 
and
 
have
 
been
 
adjusted
 
to
 
take
 
into
 
account the
 
refinancing
 
of
 
the
two
 
loan
agreements
 
with
 
Nordea
 
with
 
a
 
new
 
loan
 
agreement
 
(Note
 
15(d))
 
and
 
the
 
issuance
 
of
 
the
 
new
 
Bond
(Note 15(b)). The table below does not include related debt issuance
 
costs.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period
Principal Repayment
Year 1
$
49,487
Year 2
50,221
Year 3
50,221
Year 4
84,193
Year 5
156,116
Year 6 and
 
thereafter
100,828
Total
$
491,066