ATHENS, Greece, Feb. 12, 2016 /PRNewswire/ -- Paragon
Shipping Inc. (the "Company") today announced it has commenced an
offer to exchange all properly delivered and accepted 8.375% senior
notes due 2021 issued in $25.00
denominations with CUSIP number 69913R-507 (each a "Paragon Note"
and collectively the "Paragon Notes") for shares of common stock
(the "Common Stock") of Paragon (the "Exchange Offer"). Each
holder of a Paragon Note (each a "Holder" and collectively the
"Holders") who validly delivers and does not withdraw all Paragon
Notes held by such Holder shall receive 60 shares of Common Stock
for each Paragon Note, which shall include any accrued and unpaid
interest thereon. Any Holder that validly delivers and does
not withdraw all Paragon Notes held by such Holder by March 4, 2016 (the "Early Delivery Deadline")
shall receive an early delivery premium of 15 shares, resulting in
a total of 75 shares of Common Stock being received for each
Paragon Note, which shall include any accrued and unpaid interest
thereon. As part of the exchange offer, Holders will also be
required to consent to the removal of certain covenants and
sections of the Paragon Notes' Indenture dated August 8, 2014 (together with the Exchange Offer,
"Exchange Offer and Consent Solicitation").
The Exchange Offer and Consent Solicitation will expire at
11:59 P.M., New York City time, on March 14, 2016, unless extended (as it may be
extended, the "Expiration Date"). Paragon Notes delivered and
not withdrawn prior to the Early Delivery Deadline may not be
withdrawn. Unless there is an extension, settlement for the
Paragon Notes validly delivered and not withdrawn on or before the
Early Delivery Deadline will be on March 9,
2016 (the "Initial Settlement Date"), and settlement for
Notes validly delivered after the Early Delivery Deadline and on or
before the Expiration Date will be on March
17, 2016 (the "Final Settlement Date"). Holders who
deliver and do not withdraw their Paragon Notes in the Exchange
Offer and the Consent Solicitation will not be entitled to any
future interest on such Paragon Notes or any accrued but unpaid
interest as of March 14, 2016,
regardless of when the Exchange Offer and the Consent Solicitation
closes, and any subsequent interest that would otherwise have been
earned on such Paragon Notes will be deemed paid in full upon
receipt of the Common Stock in the Exchange Offer and the Consent
Solicitation.
This press release is neither an offer to purchase nor a
solicitation of an offer to sell or exchange securities. No offer,
solicitation, purchase, sale or exchange will be made in any
jurisdiction in which such offer, solicitation, sale or exchange
would be unlawful. The Exchange Offer and Consent Solicitation is
being made solely pursuant to the terms and conditions set forth in
the applicable letter of transmittal.
Georgeson is acting as Information Agent for the Exchange Offer
and Consent Solicitation and requests for letters of transmittal or
questions regarding the Exchange Offer and the Consent Solicitation
may be directed to Georgeson at the following telephone numbers:
(888) 666-2580. Copies of the letter of transmittal relating
to the Exchange Offer and the Consent Solicitation are also
available on the Company's website.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are based on our
current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements, including but not limited to any statements regarding
the Exchange Offer and Consent Solicitation. Risks,
uncertainties and assumptions include the possibility that expected
benefits may not materialize as expected as well as other risks
that have been included in filings with the Securities and Exchange
Commission, all of which are available at www.sec.gov.
About Paragon Shipping Inc.
Paragon Shipping is an international shipping company
incorporated under the laws of the Republic of the Marshall Islands with executive offices in
Athens, Greece, specializing in
the transportation of drybulk cargoes. Paragon Shipping's current
fleet consists of six drybulk vessels with a total carrying
capacity of 297,879 dwt. In addition, Paragon Shipping's current
newbuilding contracts consist of two Ultramax and three Kamsarmax
drybulk carriers with scheduled deliveries in the first quarter of
2016. The Company's common shares and Paragon Notes trade on the
NASDAQ Capital Market under the symbols "PRGN" and "PRGNL,"
respectively. For more information, visit:
www.paragonship.com. The information contained on Paragon
Shipping's website does not constitute part of this press
release.
Contacts:
Paragon Shipping Inc.
ir@paragonshipping.gr
DresnerAllenCaron
Rudy
Barrio (Investors)
rbarrio@dresnerallencaron.com
(212) 691-8087
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SOURCE Paragon Shipping Inc.
