11.

Long-term Debt

Term Loans		Original		December 31,		Movement in 2016					December 31,
Issue Date	Maturity Date	Amount		2015		Additions		Repayments			2016
December 5, 2005	September 9, 2016		100,067,500		8,787,030		-		(8,787,030	)		-
June 6, 2006	June 28, 2016		6,580,000		1,289,680		-		(1,289,680	)		-
June 21, 2007	December 21, 2017		49,875,000		17,496,750		-		(3,082,500	)		14,414,250
February 12, 2008	February 19, 2020		40,250,000		19,375,000		-		(2,500,000	)		16,875,000
July 30, 2008	November 4, 2020		33,240,000		19,667,000		-		(1,939,000	)		17,728,000
October 9, 2008	October 9, 2020		29,437,000		7,870,000		-		(780,000	)		7,090,000
January 30, 2009	July 15, 2016		45,000,000		27,150,000		-		(27,150,000	)		-
September 15, 2016	September 15, 2021		24,600,000		-		24,600,000		(3,458,727	)		21,141,273
April 14, 2014	April 14, 2020		20,400,000		17,100,000		-		(2,200,000	)		14,900,000
February 1, 2011	September 1, 2018		49,400,000		34,550,000		-		(3,300,000	)		31,250,000
March 1, 2011	June 20, 2020		43,250,000		32,375,000		-		(3,000,000	)		29,375,000
September 23, 2013	September 30, 2020		45,212,500		33,844,180		-		(5,052,586	)		28,791,594
March 24, 2014	July 31, 2022		50,225,000		46,445,000		-		(3,605,000	)		42,840,000
April 16, 2014	April 16, 2020		30,000,000		25,665,000		-		(3,330,000	)		22,335,000
June 12, 2014	October 2, 2020		13,000,000		12,120,000		-		(880,000	)		11,240,000
June 20, 2014	January 8, 2023		20,925,000		19,860,000		-		(1,420,000	)		18,440,000
December 20, 2013	June 30, 2023		67,200,000		31,500,000		31,200,000		(3,225,000	)		59,475,000
December 24, 2015	December 14, 2022		22,400,000		22,400,000		-		(1,493,328	)		20,906,672
July 4, 2014	September 3, 2021		22,750,000		22,343,750		-		(1,625,000	)		20,718,750
July 29, 2014	July 7, 2023		25,350,000		24,821,875		-		(2,112,500	)		22,709,375
Total					424,660,265		55,800,000		(80,230,351	)		400,229,914

Current portion of long-term debt					75,546,625							55,238,573
Long term debt					349,113,640							344,991,341
Total debt					424,660,265							400,229,914


Current portion of deferred finance charges					618,174							644,858
Deferred finance charges non-current					1,879,537							1,699,467
Total deferred finance charges					2,497,711							2,344,325

Total debt					424,660,265							400,229,914
Less: Total deferred finance charges					2,497,711							2,344,325
Total debt, net of deferred finance charges					422,162,554							397,885,589
Less: Current portion of long-term debt, net of current portion of deferred finance charges					74,928,451							54,593,715
Long term debt, net of deferred finance charges					347,234,103							343,291,874

December

20,

2013

the Company entered into a term loan with a bank institution to partially finance the acquisition of

four

LPG carriers under construction, in an amount equal to (i) the lesser of

$67,200,000

70%

of the fair market value of the vessels subject to the Minimum Employment Condition being met at the delivery date of each vessel or (ii) the lesser of

$62,400,000

65%

of the fair market value of the vessels if the Minimum Employment Condition will not be met at the delivery date of each vessel. The term loan was drawn down in

four

tranches upon the delivery of each vessel. The

first

and

second

tranche amounting to

$16,000,000

each were drawn down on

September

14,

2015

and

September

30,

2015,

respectively. The

third

and

fourth

tranche amounting to

$15,600,000

each were drawn down on

February

16,

2016

and

June

30,

2016,

respectively.

March

24,

2014

the Company entered into a term loan with a bank to partially finance the acquisition of

three

LPG carriers under construction, named “Eco Stream”, “Eco Chios” and “Eco Galaxy”, respectively, by

three

of the Company’s wholly owned subsidiaries. The term loan was drawn down in

three

tranches upon the delivery of each vessel. The

first

and

second

tranche amounting to

$17,150,000

each were drawn down on

March

31,

2014

and on

June

30,

2014,

respectively, and the

third

tranche amounting to

$15,925,000

was drawn down on

July

31,

2015.

April

16,

2014,

the Company entered into a facility agreement with a bank to partially finance the acquisition of

one

LPG carrier on its delivery and to refinance the existing term loan dated

June

25,

2009.

The term loan was up to

$30,000,000

and was drawn down in

three

tranches. The

two

tranches amounting to

$14,250,000

were drawn down on

April

25,

2014

and the

third

tranche amounting to

$15,750,000

was drawn down on

April

21,

2015.

June

20,

2014

the Company entered into a term loan with a bank to partially finance the acquisition of

two

LPG carriers under construction, named “Eco Corsair” and “Eco Elysium”, respectively, by

two

of the Company’s wholly owned subsidiaries. The term loan amounting to

$20,925,000

was drawn down on

January

2015.

July

2014,

the Company entered into a term loan with a bank to partially finance the acquisition of

two

LPG carriers under construction on their delivery. The term loan is up to

$22,750,000

and was drawn down in

two

tranches upon the delivery of each vessel. The

first

and

second

tranche amounting to

$11,375,000

each were drawn down on

August

2015

and on

September

2015,

respectively.

July

29,

2014,

the Company entered into a term loan with a bank to partially finance the acquisition of

two

LPG carriers under construction on their delivery. The term loan amounting to

$25,350,000

was drawn down in

one

tranche on

July

2015.

March

27,

2015,

the Company voluntary repaid the outstanding balance of the term loan dated

May

17,

2006,

amounting to

$13,500,000.

December

24,

2015,

the Company entered into a term loan with a bank to partially finance the acquisition of

two

LPG carriers under construction on their delivery. The term loan amounting to

$22,400,000

was drawn down in

one

tranche on

December

30,

2015.

May

13,

2016

the Company entered into a term sheet with a bank to partially finance the acquisition of

two

LPG carriers on their delivery. The aggregate term loan is up to

$76,020,000

and will be drawn down in

two

tranches upon the delivery of each vessel. The total facility will be repayable, with the

first

installment commencing

three

months after the drawdown, in

thirty

two

consecutive quarterly installments plus a balloon payment payable together with the last installment.

May

18,

2016

the Company entered into a term loan with a bank to partially finance the acquisition of

two

LPG carriers under construction, by

two

of the Company’s wholly owned subsidiaries. The term loan will not exceed the amount of

$74,480,000

and will be drawdown in

two

tranches upon the delivery of each vessel. As of

December

31,

2016,

no tranches were drawn down.

September

15,

2016,

the Company entered into a facility agreement with a bank to refinance the existing term loan dated

January

30,

2009.

The term loan amounted to

$24,600,000

and was drawn down in

one

tranche at the signing date of the facility agreement.

The above loans are generally repayable in quarterly or semi-annual installments and a balloon payment at maturity and are secured by

first

priority mortgages over the vessels involved, plus the assignment of the vessels’ insurances, earnings and operating and retention accounts with the lenders, and the guarantee of ship-owning companies, as owners of the vessels. The term loans contain financial covenants requiring the Company to ensure that:

•	the aggregate market value of the mortgaged vessels at all times exceeds a certain percentage of the amounts outstanding as defined in the term loans, ranging from 125% to 130%,
•	the leverage of the Company defined as Total Debt net of Cash should not exceed 80% of total market value adjusted assets,
•	the Interest Coverage Ratio of the Company defined as EBITDA to interest expense to be at all times greater than to 2.5:1,
•	at least a certain percentage of the Company is to always be owned by members of the Vafias family,
•	the Company should maintain on a monthly basis a cash balance of a proportionate amount of the next installment and relevant interest plus a minimum aggregate cash balance of $5,174,710 in the earnings account with the relevant banks,
•	dividends paid by the borrower will not exceed 50% of the Company’s free cash flow in any rolling 12 month period.

The interest rates on the outstanding loans as of

December

31,

2016

are based on Libor plus a margin which varies from

0.70%

3.00%.

The average interest rates (including the margin) on the above outstanding loans for the applicable periods were:

Year ended

December

31,

2014:

2.28%

Year ended

December

31,

2015:

2.67%

Year ended

December

31,

2016:

3.03%

Bank loan interest expense for the above loans for the years ended

December

31,

2014,

2015

and

2016

amounted to

$8,746,786,

$10,175,944

and

$14,149,326,

respectively. Of these amounts, for the years ended

December

31,

2014,

2015

and

2016,

the amounts of

$2,113,297,

$1,822,443

and

$1,660,802,

respectively, were capitalized as part of advances paid for vessels under construction. Interest expense, net of interest capitalized, is included in interest and finance costs in the consolidated statements of operations.

December

31,

2016,

the Company was in compliance with all of its debt financial covenants.

The aggregate available unused amounts under these facilities at

December

31,

2016

were

$150,500,000

and the Company is required to pay a quarterly commitment fee from

0.70%

0.77%

per annum of the unutilized portion of the line of credit.

The annual principal payments to be made, for the abovementioned loans, after

December

31,

2016

are as follows:

December 31,	Amount
2017		55,238,573
2018		64,449,323
2019		35,874,323
2020		111,407,569
2021		47,243,219
Thereafter		86,016,907

Total		400,229,914