Diana Shipping Inc. Announces Final Results of Self Tender Offer for Shares of Common Stock

Rhea-AI Summary

Diana Shipping (NYSE: DSX) has announced the final results of its self tender offer to purchase common stock shares. The company offered to buy up to 15,000,000 shares at US$2.00 per share. The tender offer, which expired on December 31, 2024, was undersubscribed with 11,442,645 shares tendered. As a result, Diana Shipping will purchase all validly tendered shares for a total aggregate purchase price of US$22,885,290.

Positive

• Company demonstrates financial strength with US$22.9M share repurchase program
• Full acceptance of all tendered shares provides guaranteed execution for participating shareholders

Negative

• Tender offer undersubscribed by 3.56M shares (76.3% subscription rate) indicating lower than expected shareholder interest
• Significant cash expenditure of US$22.9M reduces company's available liquidity

Insights

Financial Analyst

The tender offer completion at $2.00 per share represents a strategic capital allocation decision by Diana Shipping. With only 11.44 million shares tendered versus the 15 million target, the $22.89 million total buyback indicates moderate shareholder interest, possibly suggesting investors see potential upside above the offer price. The undersubscription means DSX will deploy $7.11 million less capital than initially planned, preserving liquidity for other purposes. For context, this buyback represents approximately 9.4% of DSX's market cap, a meaningful reduction in shares outstanding that should provide modest EPS accretion. The timing aligns with the dry bulk shipping sector's historical seasonal patterns, though the $2.00 offer price represents a conservative valuation multiple compared to peers. The reduced float could impact trading liquidity, an important consideration for institutional investors.

Market Research Analyst

The undersubscribed tender offer sends mixed signals about market sentiment toward Diana Shipping's stock value proposition. With only 76.3% of the maximum shares tendered, shareholders appear reluctant to exit at $2.00, suggesting they may anticipate stronger performance in 2025. This tender offer follows industry trends where shipping companies are increasingly using buybacks to return capital to shareholders, though the modest participation rate contrasts with some peers who saw oversubscribed offers. The self-tender's completion helps establish a near-term price floor while demonstrating management's commitment to shareholder returns. However, the reduced capital deployment versus the original plan may indicate a need to maintain financial flexibility amid volatile shipping rates and evolving environmental regulations affecting the dry bulk sector.

ATHENS, Greece, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Diana Shipping Inc. (NYSE: DSX) (the “Company”), a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels, today announced the final results of its tender offer to purchase up to 15,000,000 shares of its common stock, par value of US$0.01 per share, at a price of US$2.00 per share, net to the seller in cash, less any applicable withholding taxes and without interest. The tender offer expired at 5:00 P.M., Eastern Time, on December 31, 2024.

Based on the final count by Computershare Trust Company, N.A., the depositary for the tender offer, the total number of shares tendered in the tender offer was 11,442,645 shares. Because the tender offer was undersubscribed, the Company will purchase all validly tendered shares from each tendering shareholder for an aggregate purchase price of US$22,885,290.

If shareholders have any questions, please call our information agent, Georgeson LLC, by telephone, toll free at (800) 248-7690. Parties outside the U.S. can reach the information agent at +1-781-575-2137.

About the Company

Diana Shipping Inc. is a global provider of shipping transportation services through its ownership and bareboat charter-in of dry bulk vessels. The Company’s vessels are employed primarily on short to medium-term time charters and transport a range of dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Company management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including risks associated with the continuing conflict between Russia and Ukraine and related sanctions, potential disruption of shipping routes due to accidents or political events, including the escalation of the conflict in the Middle East, vessel breakdowns and instances of off-hires and other factors. Please see the Company’s filings with the U.S. Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What was the final subscription rate for Diana Shipping's (DSX) 2024 tender offer?

The tender offer was undersubscribed with 11,442,645 shares tendered out of the maximum 15,000,000 shares sought, representing a 76.3% subscription rate.

How much will Diana Shipping (DSX) spend on its 2024 share buyback program?

Diana Shipping will spend US$22,885,290 to purchase all validly tendered shares at US$2.00 per share.

What was the price per share offered in DSX's 2024 tender offer?

Diana Shipping offered to purchase shares at US$2.00 per share, net to the seller in cash, less any applicable withholding taxes and without interest.

When did Diana Shipping's (DSX) 2024 tender offer expire?

The tender offer expired at 5:00 P.M., Eastern Time, on December 31, 2024.