11.	Long-term Debt

Term Loans		Drawn		December 31,		Movement in 2017					December 31,
Issue Date	Maturity Date	Amount		2016		Additions		Repayments			2017
June 21, 2007	December 21, 2017		49,875,000		14,414,250		-		(14,414,250	)		-
February 12, 2008	February 19, 2020		40,250,000		16,875,000		-		(2,500,000	)		14,375,000
July 30, 2008	November 4, 2020		33,240,000		17,728,000		-		(1,939,000	)		15,789,000
October 9, 2008	October 9, 2020		29,437,000		7,090,000		-		(780,000	)		6,310,000
September 15, 2016	September 15, 2021		24,600,000		21,141,273		-		(4,026,908	)		17,114,365
April 14, 2014	April 14, 2020		20,400,000		14,900,000		-		(1,800,000	)		13,100,000
February 1, 2011	September 1, 2018		49,400,000		31,250,000		-		(3,300,000	)		27,950,000
March 1, 2011	June 20, 2020		43,250,000		29,375,000		-		(3,000,000	)		26,375,000
September 23, 2013	September 30, 2020		45,212,500		28,791,594		-		(5,052,587	)		23,739,007
March 24, 2014	July 31, 2022		50,225,000		42,840,000		-		(3,605,000	)		39,235,000
April 16, 2014	April 16, 2020		30,000,000		22,335,000		-		(3,330,000	)		19,005,000
June 12, 2014	October 2, 2020		13,000,000		11,240,000		-		(880,000	)		10,360,000
June 20, 2014	January 8, 2023		20,925,000		18,440,000		-		(1,420,000	)		17,020,000
December 20, 2013	June 30, 2023		67,200,000		59,475,000		-		(3,960,000	)		55,515,000
December 24, 2015	December 14, 2022		22,400,000		20,906,672		-		(1,493,328	)		19,413,344
July 4, 2014	September 3, 2021		22,750,000		20,718,750		-		(1,625,000	)		19,093,750
July 29, 2014	July 7, 2023		25,350,000		22,709,375		-		(2,112,500	)		20,596,875
December 7, 2017	December 11, 2022		22,275,000		-		10,500,000		-			10,500,000
May 18, 2016	May 16, 2025		65,650,000		-		32,500,000		(1,015,500	)		31,484,500
Total					400,229,914		43,000,000		(56,254,073	)		386,975,841

Current portion of long-term debt					55,238,573							42,580,323
Long term debt					344,991,341							344,395,518
Total debt					400,229,914							386,975,841


Current portion of deferred finance charges					644,858							613,716
Deferred finance charges non-current					1,699,467							1,453,677
Total deferred finance charges					2,344,325							2,067,393

Total debt					400,229,914							386,975,841
Less: Total deferred finance charges					2,344,325							2,067,393
Total debt, net of deferred finance charges					397,885,589							384,908,448
Less: Current portion of long-term debt, net of current portion of deferred finance charges					54,593,715							41,966,607
Long term debt, net of deferred finance charges					343,291,874							342,941,841

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.

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 drawn down in

two

tranches upon the delivery of each vessel. The

first

tranche amounting to

$32,500,000

was drawn down on

May 16, 2017

and the

second

tranche amounting to

$33,150,000

was drawn down on

January 10, 2018.

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.

March 1, 2017

the Company, following the term sheet of

May 13, 2016,

entered into a term loan with the 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

first

tranche amounting to

$35,525,000

was drawn down on

January 4, 2018

and on

January 10, 2018

and the

second

tranche amounting to

$35,262,500

was drawn down on

April 13, 2018

and on

April 17, 2018.

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.

December 7, 2017,

the Company entered into a term loan with a bank to repay amounts outstanding under existing loan and to refinance the cost of acquisition of

one

product carrier. The term loan is up to

$22,500,000

and was drawn down in

two

tranches. The

first

tranche amounting to

$10,500,000

was drawn down on

December

11,

2017

and the

second

tranche amounting to

$11,775,000

was drawn down on

February

2018.

March 27, 2018,

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

February 1, 2011.

The term loan amounting to

$27,675,000

will be repayable in

twenty-four

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

$275,000

was paid on

January 22, 2018

relating to the existing term loan dated

February 1, 2011.

Remaining obligations of the term loan dated

February 1, 2011,

have been presented as long-term in accordance with US GAAP as the Company had the intent and ability to refinance the obligation of

$27,675,000,

on a long term basis through the term loan that the Company has entered on

March 27, 2018

discussed above.

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%

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

$7,917,738

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

month period.

Gross deferred finance charges amounting to

$7,055,914

and

$7,871,170

as of

December

31,

2016

and

December

31,

2017,

respectively, represent fees paid to the lenders for obtaining the related loans, and are presented on the balance sheet as a direct deduction from the carrying amount of the related loan and credit facility net of accumulated amortization. For the years ended

December

31,

2015,

2016

and

2017,

the amortization of deferred financing charges amounted to

$587,157,

$715,587

and

$690,841,

respectively, and is included in interest and finance costs in the consolidated statements of operations.

The interest rates on the outstanding loans as of

December

31,

2017

are based on Libor plus a margin which varies from

0.80%

3.00%.

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

Year ended

December

31,

2015:

2.67%

Year ended

December

31,

2016:

3.43%

Year ended

December

31,

2017:

3.97%

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

December

31,

2015,

2016

and

2017

amounted to

$10,175,944,

$14,149,326

and

$15,640,377,

respectively. Of these amounts, for the years ended

December

31,

2015,

2016

and

2017,

the amounts of

$1,822,443,

$1,660,802

and

$813,423,

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,

2017,

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

The aggregate available unused amounts under these facilities at

December 31, 2017

were

$125,260,000

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,

2017

are as follows:

December 31,	Amount
2018		42,580,323
2019		42,505,323
2020		118,038,569
2021		53,874,219
2022		58,478,532
Thereafter		71,498,875

Total		386,975,841