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Long-term Debt
 12 Months Ended
Dec. 31, 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
175,000
119,100
Secured long-term debt
347,590
397,857
Total long-term
 
debt
$
522,590
$
516,957
Less: Deferred financing costs
 
(7,973)
(6,314)
Long-term debt, net of deferred financing costs
$
514,617
$
510,643
Less: Current long-term debt, net of deferred financing
 
costs,
current
(45,230)
(49,512)
Long-term debt, excluding current maturities
$
469,387
$
461,131
 
8.375% 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. On June 29, 2023, the Company repurchased $
5,900
 
nominal value of the bond for $
5,851
 
and
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
. In
 
June 2024,
 
the bond
 
became callable,
 
and on
 
July 2,
 
2024,it was
 
prepaid
at a price equal to
103.35
% of nominal value, with the proceeds from the new bond discussed below. The
Company
 
applied
 
the
 
debt
 
modification
 
guidance
 
for
 
the
 
part
 
of
 
the
 
transaction
 
refinanced
 
by
 
existing
investors
 
amounting
 
to
 
$
57,850
 
and
 
the
 
debt
 
extinguishment for
 
the
 
remaining
 
$
61,250
.
 
An
 
amount
 
of
$
5,336
 
consisting
 
of
 
the
 
costs
 
paid
 
to
 
investors
 
who
 
participated
 
in
 
the
 
refinancing
 
and
 
unamortized
deferred fees were deferred
 
over the term of
 
the new bond and
 
an amount of $
3,475
 
was recorded as loss
on
 
debt
 
extinguishment. The
 
bond included
 
financial and
 
other
 
covenants and
 
was trading
 
on the
 
Oslo
Stock Exchange under the ticker symbol “DIASH02”.
 
8.75% Senior Unsecured Bond
:
 
On July 2, 2024, the Company
 
issued $
150,000
 
out of the $
175,000
 
maximum amount of a new
 
issue of a
senior unsecured
 
bond maturing
 
in July
 
2029 having
 
a US Dollar
 
fixed-rate coupon
 
of
8.75
% payable
 
semi-
annually in arrears in January and
 
July of each year.
 
The bond is callable in whole or
 
in part in July 2027
at a
 
price equal
 
to
103.50
% of
 
nominal value;
 
in January
 
2028 at
 
a price
 
equal to
102.625
% of
 
nominal
value; in
 
July 2028
 
at a
 
price equal
 
to
101.75
% and
 
after January
 
2029 at
 
a price
 
equal to
100.00
%
 
of
nominal value.
 
On November
 
8, 2024,
 
the Company
 
issued the
 
remaining $
25,000
 
nominal value
 
of the
bond issue, at
102.00
% of
 
par value. 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.
 
The
 
bond
 
includes
 
financial
 
and
 
other
 
covenants
 
and
 
is
 
trading
 
on
 
the
 
Oslo
 
Stock
Exchange under the ticker symbol “DIASH03”.
Secured Term Loans:
Under the
 
secured term
 
loans outstanding
 
as of
 
December 31,
 
2024,
27
 
vessels of
 
the Company’s
 
fleet
are
 
mortgaged
 
with
 
first
 
preferred
 
or
 
priority
 
ship
 
mortgages,
 
having
 
an
 
aggregate
 
carrying
 
value
 
of
$
585,780
.
 
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 December 31,
 
2024 and 2023 minimum
 
cash deposits required to
 
be maintained at all
 
times under
the Company’s
 
loan facilities,
 
amounted to
 
$
19,000
 
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. All
 
of the Company’s
 
secured term loans
 
bear interest at
SOFR plus a margin. In 2024 and 2023, the weighted
 
average interest rate of the secured term
 
loans was
7.3
% and
7.3
%, respectively.
As of December
 
31, 2024 and
 
2023, 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 of
 
9 Ultramax
 
vessels. The
 
Company drew
 
down
$
197,236
 
under the loan,
 
in tranches for
 
each vessel on
 
their delivery to
 
the Company and
 
in December
2022 prepaid
 
$
21,937
 
due to
 
a vessel
 
sale and
 
leaseback transaction. The
 
loan was
 
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
.
 
On June 27, 2023, the Company drew down $
22,500
 
under a secured loan agreement and prepaid in full
the
 
outstanding
 
balance
 
of
 
an
 
existing
 
loan
 
amounting
 
to
 
$
20,934
 
and
 
recorded
 
a
 
loss
 
on
 
debt
extinguishment amounting to $
220
. The loan, maturing
 
on
June 27, 2028
 
was repayable in equal
 
quarterly
instalments of $
1,125
.
On
 
July
 
25,
 
2024,
 
the
 
Company
 
entered
 
into
 
a
 
$
167,263
 
loan
 
agreement,
 
drawn
 
on
 
July
 
25,
 
2024,
 
to
refinance
 
the
 
outstanding
 
balance
 
of
 
the
 
two
 
loans
 
mentioned
 
above.
 
The
 
loan
 
is
 
repayable
 
in
 
equal
quarterly instalments of $
4,454
 
and a balloon instalment of $
64,827
 
payable on
July 25, 2030
.
 
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
.
DNB Bank
 
ASA or DNB:
 
On June
 
26, 2023, the
 
Company entered into
 
a $
100,000
 
sustainability linked
loan agreement which was drawn on June 27, 2023, to refinance the outstanding balance of another loan
and
 
for
 
working
 
capital
 
purposes.
 
The
 
loan
 
is
 
repayable
 
in
 
equal
 
quarterly
 
instalments
 
of
 
$
3,846
 
until
December 27, 2029
. The loan is subject to a margin reset
 
and unless the parties agree on a new margin,
the loan will
 
be mandatorily repayable
 
on June 27,
 
2027. On
 
July 6, 2023,
 
the Company entered
 
into an
interest rate swap with DNB for a notional amount for the
30
% of the loan amount. Under the interest rate
swap, the Company pays
 
a fixed rate and
 
receives floating under term
 
SOFR.
 
The swap has a
 
termination
date on December 27,
 
2029, and a mandatory
 
break on June 27,
 
2027, according to which the
 
swap will
be terminated if the loan is prepaid. As of December 31,
 
2024 and 2023, the fair value of the interest rate
swap amounted
 
to
 
$
165
 
and $
439
, respectively,
 
and is
 
separately presented
 
in current
 
assets/liabilities
and non-current liabilities. In 2024 and 2023, the Company recognized a gain of $
274
 
and a loss of $
439
,
respectively, from
 
the swap valuation separately presented as gain/(loss) on derivative instruments in the
accompanying consolidated statements
 
of income.
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
 
loans with
 
other banks
 
and for
 
working
 
capital.
On
 
April
 
18
 
and
 
19,
 
2023,
 
the
 
Company
 
drew
 
down
 
$
100,000
 
which
 
was
 
repayable
 
in
 
equal
 
quarterly
instalments of $
3,301
 
each and a balloon of $
33,972
 
payable together with the last instalment on
 
April 19,
2028. On
 
October 18,
 
2024, the
 
Company refinanced
 
the outstanding
 
balance of
 
this loan
 
with a
 
loan which
is repayable in equal quarterly instalments of $
2,533
 
each and a balloon of $
14,323
 
payable together with
the last instalment on
April 18, 2031
.
As of December 31, 2024 and 2023, the Company was in compliance
 
with all of its loan covenants.
As of December 31, 2024, the maturities of
 
the Company’s bond and debt facilities throughout their term,
are shown in the table below and do not include related debt issuance
 
costs.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period
Principal Repayment
Year 1
$
47,150
Year 2
47,150
Year 3
47,149
Year 4
47,149
Year 5
222,149
Year 6 and
 
thereafter
111,843
Total
$
522,590