One Down, Many to Go

DryShips announced on Tuesday that it had entered into an agreement in principle with Piraeus Bank to restructure its two loan facilities in the original aggregate amount of $220.0 million with a current outstanding of $164.9 million.

Attributing the restructure to the failure of certain buyers to conclude the agreed purchase of three vessels, the bank and the company agreed to a waiver of financial covenants, including LTV, through January 1, 2011. The terms have also been modified to provide for an increased margin, a re-scheduling of amortization that will reduce principal payments by approximately 47% and 21% respectively in 2009 and 2010, the benefit of which will be offset by a shorter tenor.

The agreement is subject to approval by the Piraeus Bank’s credit committee and definitive

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