$1bn let-off

DryShips has secured a waiver from Deutsche Bank on debt of $1.13bn.

George Economou.

This latest let-off, a fifth for the George Economou-led shipowner this year, means its banks have now waived covenants breaches on loans of around $2.8bn since the onset of the financial crisis.

DryShips says the Deutsche reprieve relates to a facility used to buy two drillship newbuildings at Samsung Heavy Industries.

Economou, chairman and CEO of DryShips said: “We are delivering the waivers as promised and we hope to conclude discussions with the rest of the lenders in the near future.”

Doug Mavrinac, head of Jefferies Maritime Research, says DryShips has now secured waivers on all of its major loan facilities.

Shares in DryShips gained 1.76% to $6.92 each in New York following the announcement.

Mavrinac tells TradeWinds the stock price has only risen marginally today as the waiver was anticipated by the market and DryShips share has been diluted by recent ATM offerings.

He added: “It is a positive development for them but not a big surprise considering how much the banks have been willing to work with dry-bulk shipping companies and also because of how DryShips has fortified its balance sheets over the past six months with a lot of equity raises.”

News of the waiver comes only two weeks after DnB NOR agreed to ignore a breach on an $86m loan to DryShips covering two bulk carriers.

Only days earlier, HSH Nordbank granted DryShips a waiver on a loan of $654m linked to a total of 23 bulkers.

It has also been given let-offs on its $800m Primelead facility and a further $220m loan with Piraeus Bank since the start of 2009.

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