Diana Shipping Inc. Announces the Acquisition of Nine Ultramax Dry Bulk Vessels from Sea Trade Holdings Inc.

Athens, Greece - August 11, 2022

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 that it has agreed, through separate wholly-owned subsidiaries, to acquire nine modern ultramax dry bulk vessels built between 2015 and 2018, with an average vessel age of approximately 5.4 years, from Sea Trade Holdings Inc. (“Sea Trade”), an unaffiliated third party. The vessel deliveries are expected to occur during the fourth quarter of 2022.

The Company and Sea Trade have entered into a Master Agreement pursuant to which the Company will acquire the nine vessels for an aggregate purchase price of US$330 million, of which US$220 million will be paid in cash and US$110 million is to be paid in the form of 18,487,395, in aggregate, newly issued common shares of the Company, at a price of US$5.95 per share. The Company intends to fund the cash portion of the consideration with available cash on hand and is currently negotiating terms of a new credit facility with a major European lender, the proceeds of which will be used to fund the balance of the cash purchase price. The common shares will be issued upon the closing of each vessel delivery. The Company has agreed to register the common shares consideration to be issued to Sea Trade for resale pursuant to a registration statement to be filed with the SEC.

After giving effect to the delivery of the nine vessels and upon completion of the previously announced sale of the m/v Baltimore, Diana Shipping Inc.’s fleet will consist of 43 dry bulk vessels (4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax and 9 Ultramax). As of today, the combined carrying capacity of our fleet, including the m/v Baltimore and excluding the nine vessels not yet delivered, is approximately 4.5 million dwt with a weighted average age of 10.53 years. After the consummation of this transaction and upon completion of the previously announced sale of m/v Baltimore, the carrying capacity of our fleet will be approximately 4.9 million dwt. A table describing the current Diana Shipping Inc. fleet can be found on the Company’s website, www.dianashippinginc.com. Information contained on the Company’s website does not constitute a part of this press release.

Advisors
Seward & Kissel LLP is serving as legal advisor to Diana Shipping Inc.

Evercore is serving as financial advisor and Reed Smith LLP is serving as legal advisor to Sea Trade Holdings Inc.

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.

Diana Shipping Inc. press release