DIANA SHIPPING CUM.PFD.B

Diana Shipping has extended a fully underwritten financing package of US$1.412 billion for its takeover offer for Genco; the package was arranged by DNB Carnegie and Nordea, with participation from BNP Paribas, Standard Chartered, Deutsche Bank and Danske Bank among others. Tranche B was adjusted from US$331 million to US$310 million following the sale of two Genco vessels, while Tranche A remains at US$1.102 billion. The offer amounts to US$27.34 per share (US$24.80 in cash plus one Diana share valued at US$2.54) and represents a 53% premium to Genco’s unaffected price; it is subject to several conditions, including a merger agreement, the tendering of a majority of shares and approval by Genco’s board. Diana plans to file amended offer documents with the U.S. regulator (Schedule TO, Form F-4). » More on de.investing.com

The board of directors of Genco Shipping & Trading unanimously rejected the unsolicited offer from Diana Shipping and recommends that shareholders do not tender their shares, saying the bid undervalues the assets and the business and includes no control premium. Genco filed a Schedule 14D-9 with the SEC and cites analyst NAV estimates (average $26.54, median $26.80) and an InvestingPro valuation of $28.83 as fair value. Opinions from Jefferies and Morgan Stanley likewise conclude that the consideration offered to shareholders other than Diana is inadequate. » More on de.investing.com

Diana Shipping has concluded a time-charter contract for the Capesize vessel m/v New York at a gross rate of $27,500/day (minus 5% commission); the previous rate was $17,600/day. For the Ultramax vessel m/v DSI Pyxis a charter was agreed at $16,000/day (minus 5% commission); the prior rate was $13,100/day. Together the two contracts are expected to generate about $23.76 million in gross revenue over the minimum charter periods; the company reports a gross profit margin of 57% and a low PEG of 0.23. » More on de.investing.com