ATHENS, Greece, March 21, 2016 /PRNewswire/ -- Paragon Shipping
Inc. (the "Company") today announced the expiration of its
previously announced 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") at 5:00 p.m.
(New York City time) on
March 18, 2016.
Based on information provided by the depository for the Exchange
Offer, as of 5:00 p.m. (New York City time) on Friday March 18, 2016, 184,721 Notes or
approximately 18.8% of the outstanding Paragon Notes were delivered
and not validly withdrawn from the Exchange Offer.
Each holder of a Paragon Note (each a "Holder" and collectively
the "Holders") who validly delivered and did not withdraw
("Delivered") all Paragon Notes held by such Holder, shall receive
four (4) shares of Common Stock, which shall include any accrued
and unpaid interest thereon. As part of the Exchange Offer, Holders
who Delivered their Notes also consent to the removal of certain
covenants and sections of the Paragon Notes' Indenture dated
August 8, 2014 (the "Consent
Solicitation" and together with the Exchange Offer, "Exchange Offer
and Consent Solicitation"). Settlement for all of the Delivered
Paragon Notes is expected to be on March 23,
2016 (the "Settlement Date").
Holders who Delivered 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 23, 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.
After taking advantage of a 30-day grace period, the Company did
not make a quarterly cash interest payment due on March 17, 2016, which was initially due on
February 16, 2016.
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.
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 three Kamsarmax drybulk carriers.
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.