DryShips sheds Ocean Rig shares

DryShips, a shipping company, and the largest shareholder in the offshore driller Ocean Rig, is selling its shares in the drilling company.

In a statement issued on Tuesday, Dryship said it agreed to sell all of its shares in Ocean Rig UDW Inc. to „unrestricted subsidiary“ of Ocean Rig for total cash consideration of approximately $49.9 million.

Both Dryships and OceanRig are chaired by the Greek shipping magnate George Economou.

Dryships said that the sale proceeds will be used to partly reduce the outstanding amount under the Revolving Credit Facility (Revolver) provided by a company controlled by Economou and for general corporate purposes.

In addition Dryships has reached an agreement under the revolver whereby the lender has agreed to release its lien over the Ocean Rig shares and waive any events of default, subject to a similar agreement being reached with the rest of the lenders to Dryships, in exchange for certain LTV covenants being introduced under the revolver.

Furthermore, Dryships has sold three of its vessels the Fakarava, Rangiroa and Negonego along with the associated bank debt, to entities controlled by George Economou who serves as the company’s Chairman and CEO.

Dryships has said that the vessels were sold at fair market value, and as a result, the company’s total bank debt has been reduced by $102.1 million, and currently stands at $213.7 million.

Share this article

Follow Offshore Energy Today

Posted on April 5, 2016 with tags .

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation…

read more >

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply