The Athens, Greece-based containership lessor has entered into a Securities Purchase Agreement with Kalani Investments for the sale of up to 150,000 newly designated series B-1 and B-2 preferred shares, according to a statement form the company.
Diana Containerships Inc. is looking to raise as much as $150 million in a new share offering with British Virgin Islands-based Kalani Investments Ltd., the company said in a statement.
The containership owner and lessor, headquartered in Athens, Greece, has entered into a Securities Purchase Agreement with Kalani for the sale of 3,000 newly designated series B-1 convertible preferred shares, as well as preferred warrants for another 6,500 series B-1 shares and 140,500 series B-2 convertible preferred shares.
Should all the options be exercised, each of the shares will cost Kelani roughly $1,000, bringing the total aggregate sale amount to around $150 million.
Diana said the proceeds from the share sale would be used for general corporate purposes and/or to repay indebtedness under existing credit facilities, although it noted the company currently does not have any agreements in place to do so.
Investors apparently were not pleased with the move, however, as the company’s publicly traded stock has plummeted nearly 30 percent since the announcement – from $2.28 per share on Tuesday to $1.61 per share at the close of trading Wednesday.
Diana Containerships looks to raise $150m in private share sale
