Paragon Shipping Inc. (PRGN) Misses Q1 EPS by 16c

Paragon Shipping Inc. (NASDAQ: PRGN) reported Q1 EPS of ($0.26), $0.16 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $13.45 million versus the consensus estimate of $13.9 million.

Financing Update

On May 6, 2014, the Company completed the documentation for a senior secured loan facility with a syndicate of major European banks led by Nordea in an amount of $160.0 million, $40.0 million more than the previously announced size. This new, upsized facility will be used for the refinancing of six vessels of its operating fleet (the four Handysize vessels M/V Prosperous Seas, M/V Precious Seas, M/V Priceless Seas and the M/V Proud Seas, and the Panamax vessels M/V Coral Seas and M/V Golden Seas), along with the financing of up to 60% of the market value of the remaining two Ultramax newbuilding drybulk carriers, the Hull numbers DY4050 and DY4052, and of two of its Kamsarmax newbuilding drybulk carriers, the Hull numbers YZJ1144 and YZJ1145, that are all expected to be delivered in the second quarter of 2015.

On April 4, 2014, the Company completed the documentation for the previously announced loan agreement with HSH Nordbank AG for a $47.0 million senior secured loan facility, for the refinancing of the M/V Friendly Seas and the partial financing of the first two Ultramax newbuilding drybulk carriers, the Hull numbers DY152 and DY153.

Both of these new "covenant light" facilities improve our balance sheet by reducing our overall leverage, leaving only one of the recently ordered Kamsarmax newbuildings to be financed. At the same time they increase our financial flexibility by having no dividend restrictions and include no earnings maintenance related covenants going forward.

Share Buyback Program

On May 12, 2014, the Company's Board of Directors authorized a share buyback program of up to $10.0 million for a period of twelve months. The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares.

For earnings history and earnings-related data on Paragon Shipping Inc. (PRGN) click here.

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