Paragon Shipping Inc. (the "Company") 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 October 31, 2016 (the “Expiration Date”).

Based on information provided by the depository for the Exchange Offer, as of 5:00 p.m. (New York City time) on Monday October 31, 2016, 84,588 Notes or approximately 11.3498\% of the outstanding Paragon Notes were delivered and not validly withdrawn from the Exchange Offer.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 prior to the Expiration Date validly delivered  and did not withdraw all Paragon Notes held by such Holder, shall receive ten (10) shares of Common Stock for each Paragon Note, 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"). Because the requisite number of exchanged Notes to amend the Paragon Notes’ Indenture was not received, the Paragon Notes’ Indenture will not be amended in connection with the Exchange Offer and Consent Solicitation.

Holders who delivered and did not withdraw their Paragon Notes in the Exchange Offer and the Consent Solicitation by the Expiration Date will not be entitled to any future interest on such Paragon Notes or any accrued but unpaid interest as of November 3, 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 September 15, which was initially due on August 15, 2016.

 

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. The Company's common shares trade on the OTC Markets’ OTCQB Venture Market under the symbol "PRGNF", and FINRA has designated its Senior Unsecured Notes as corporate bonds that are TRACE eligible under the symbol "PRGN4153414". 

 

Paragon Shipping Inc.

 

Capital Ship Management Corp received yesterday Amver Awards by the U.S. Coast Guard for the vessels M/T ‘Miltiadis MII’ and M/T ‘Apostolos’ “in recognition of outstanding dedication to the Automated Mutual-assistance Vessel Rescue System in support of world maritime safety” for 2015.

Mr. Benjamin M. Strong, Director, Amver Maritime Relations, U.S. Coast Guard commented: “ships from your company joined those from hundreds of nations in providing a worldwide safety network to assist search and rescue coordinators in responding to emergencies at sea.”

The Awards were presented on Monday, October 31, 2016 at the annual ‘Amver Awards’ ceremony at the Intercontinental Hotel in Athens, Greece organized by the International Propeller Club of the United States, International Port of Piraeus in cooperation with the United States Coast Guard and the United States Embassy in Greece.

 

UK charity hails generosity of shipowning pair in supporting Mediterranean refugee rescue effort

Filippos and Andonis Lemos have given $150,000 to the Save the Children Search and Rescue ship, Vos Hestia.

SAVE The Children, the UK-based charity, has announced a large donation from two Greek shipowners to its effort to rescue refugees and migrants crossing the Central Mediterranean seeking new lives in Europe. 

Brothers Filippos and Andonis Lemos, of N.S Lemos & Co in London and Enesel in Greece have “personally given” $150,000 to the Save the Children Search and Rescue ship, Vos Hestia, which is currently based out of the Sicilian port of Augusta, the charity said.

The vessel, an anchor handling tug supply vessel in the fleet of Dutch owner Vroon, has already rescued more than 1,350 refugees and migrants, including over 200 children, almost 90\% of whom are thought to have been unaccompanied.

Save the Children said that at least 600 children had died already this year attempting the perilous crossing.

Vos Hestia was refitted under a new ‘Rescue’ classification introduced by RINA Services to equip it for the new role.

This maximized the rescue capacity of the 194 ft, Italian-flagged vessel to accommodate 300 people at a time.

“Filippos and Andonis have been involved since the start of the project, donating their time as well as the generous donation, making them the earliest and biggest supporters of the Save the Children Search and Rescue Programme,” said the charity.

“This programme is saving thousands of lives and we are lucky that organisations such as Save the Children are responding with action,” said the brothers in a statement.

“Our family has a strong connection to the maritime world and it is natural for us to be drawn to this initiative.”

Enesel currently manages a fleet of 14 containerships and four tankers. This year it acquired two ice-class aframax tankers as resales from Saehan Shipbuilding in South Korea for a price of about $43m apiece.

“If we span the course of mankind’s history every single one of us can trace our origins to descendants that at some point were refugees fleeing war, persecution and insufferable hardship,” the Lemos brothers said.

Vos Hestia is acting under the co-ordination of the Italian Coast Guard, which co-ordinates all search-and-rescue operations in the region.

Once those who have been rescued are transferred onto the main vessel, Save the Children’s team aims to meet people’s basic needs by providing food and water, safe spaces for children and medical facilities.

Sayyeda Salam, director of philanthropy at the charity, said: “Without the generosity of supporters like Filippos and Andonis, we would not be part of the operation to help the 20,000 people at risk of drowning over the next 15 months.”

lloydslist.com

Yesterday the IMO MEPC meeting agreed on a global fuel sulphur limit of 0.5\% which will enter into force in 2020.

According to IMO estimations up to 70,000 ships may be affected by the regulation. To have the best competitive edge on the market, strategies and plans on how to react to the IMO’s 0.5\% sulphur cap needs to be addressed soon.

DNV GL has set a guidance paper to assist shipowners in navigating both the regulatory landscape and the alternatives for compliance.

On 24 pages our experts provide you:

- A summary of the regulatory landscape
- Insights into the different compliance options
- An overview of future trends
- Cost comparisons for different scenarios

An overview of our class and advisory services related to emission compliance

a new guidance paper 

A leading SAP Consulting and Implementation team and the most aggressively growing Company in the Maritime ICT sector join forces to enable the seamless transition of ship owners and operators towards the Digital Ship era.

The alliance aims to the “Acquisition and integration of meaningful performance and operational data with advanced analytics and decision support functions”. Such goals will be achieved by utilizing the SAP HANA and SAP Lumira technologies integrated with the advanced SeeMBox-V© Open Digital Platform especially designed for the automatic acquisition of performance data. The outcome will be the seamless online monitoring of vital operational and performance conditions from heterogeneous environments as well as the processing of the information enabling big data handling and dynamic analytics.

“Information technology is evolving rapidly allowing the optimisation of the onboard procedures and thus enabling the improvement of user experience both onboard the vessel as well as at shore side. We, at Real Consulting, are pleased and happy with our collaboration with SetelHellas, leading provider of innovative Maritime ICT Solutions, to design and deliver a common approach towards the Digital Ship achievement” said Mr. Dionyssis Athanasakos, COO of Real Consulting.

Mr. George Marinakis, Managing Director of SetelHellas noted: “It is a pleasurable time for me as the Managing Director in Setel Hellas. I believe this is a landmark moment for our companies and for our industry as a whole.  The established communications channels, close working relationship, and experience provided by this alliance will enable SetelHellas and Real Consulting to rapidly deploy a reliable, flexible, and high-quality digital solution to meet new and ever-changing shipping market demands. The cooperation created through this partnership will accelerate growth into maritime vertical market, across broader geographies and will provide to shipping clients with the competitive edge required to become leaders in their respective industry.”

 

About Real Consulting:

For over 15 years REAL CONSULTING Integration & Operation has delivered improved operational effectiveness and efficiencies through technology driven, innovative solutions and client service excellence. With more than 450 customers across Europe, REAL CONSULTING takes pride for having implemented some of the most complex, large scale and demanding projects in Greece and abroad. The company is committed in guiding its clients along the path of innovation and digital migration, through the adoption of international cutting-edge technologies and solutions.

For more information, please visit www.realconsulting.gr

About SetelHellas:

Formed in 2007, SetelHellas was one of the pioneers in the on-board ICT infrastructure. Today is a global provider of innovative Value Added Solutions (VAS) aimed at optimizing vessel’s operational efficiency. The company and its partners have provided valuable product and services to ship owners and operators by delivering strong collaborative ship to shore and shore to ship infrastructure and open connectivity. We enable a unique set of products to help our customers become leaders in their respective industry and our partners to differentiate themselves not only from their competition. Our Award winning product and SetelHellas’ installed base constitute the ultimate proof of success and excellence in providing a holistic approach and innovative solutions for an efficient, safe and eco-friendly ship.

For more information, please visit www.setel-group.com

In particular, the Company has:

Sold its two Panamax vessels Amalfi and Samatan, along with their associated bank debt, to entities controlled by the Company’s Chairman and CEO, Mr. George Economou. As part of the transaction, the Company entered into an agreement to increase its secured revolving facility (“Revolver”) provided by an entity controlled by Mr. George Economou. The Revolver was amended to increase the maximum available amount by $5.0 million to $75.0 million and to give DryShips an option to convert $7.5 million of the outstanding balance to shares of DryShips’ common stock within 365 days.

Following this transaction, the outstanding balance under the Revolver will stand at $69.4 million. The transaction was approved by the independent members of the Company’s Board of Directors on the basis of vessel valuations and a fairness opinion.

Sold its three Panamax vessels, Ocean Crystal, Sonoma and Sorrento to un-affiliated Buyers. All of the gross proceeds from the sales will be used to pay down their respective loan facilities. The vessels are scheduled to be delivered to their new owners during November 2016.

About DryShips

DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide. DryShips owns a fleet of 16 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.2 million tons, and 6 offshore supply vessels, comprised of 2 platform supply and 4 oil spill recovery vessels.

DryShips' common stock is listed on the NASDAQ Capital Market where it trades under the symbol "DRYS."

Visit the Company's website at www.dryships.com. 

Nakilat has announced the management takeover of Q-Max LNG carrier Mozah from Shell International Trading and Shipping Company Limited (STASCO).

This is the first vessel to be transitioned as part of the phased management transition. Mozah will also be the first Q-Max LNG carrier to be managed in-house by NSQL, which is currently managing 4 Q-Flex LNG and 4 large LPG carriers.

To mark the occasion, a video conference was held between Minister of Energy of Industry & Industry and Chairman of Nakilat H.E. Dr. Mohammed Bin Saleh Al Sada and the personnel onboard Mozah, to welcome them to Nakilat and discuss the importance of this transition to Nakilat and the State of Qatar.

Nakilat Managing Director Eng. Abdullah Fadhalah Al Sulaiti said: “This management takeover of Mozah today will mark the beginning of another chapter for Nakilat’s operations as we expand our role as a ship manager and move towards consolidating the operations for our wholly-owned vessels in-house. I would like to extend my sincere gratitude to all those involved in today’s successful transition, which is the fruition of hard work, careful preparations and perseverance at propelling Nakilat to greater heights.”

Al Sulaiti added: “The management of our vessels centrally from Qatar will allow Nakilat to strategically capitalize on the existing skill base, expertise and synergy with our Charterers and realize operational efficiencies in addition to optimizing costs. We remain steadfastly committed towards ensuring the highest standards of safety and quality across our fleet as we strive to be a global leader and provider of choice for energy transportation and maritime services.” 

Mozah, a Q-Max vessel wholly-owned by Nakilat and chartered by Qatargas, is the world’s largest LNG carrier in operation with a cargo carrying capacity of 266,000 cubic meters. It has completed 55 voyages, covering almost 700,000 nautical miles, since it was delivered in July 2008.

the Acquisition of the Product Tanker M/T 'Amor' and an Increase to Its Quarterly Distribution From the Fourth Quarter 2016 Onwards to $0.08 per Common Unit

Capital Product Partners L.P. (the "Partnership" or "CPLP") (NASDAQ: CPLP), an international diversified shipping partnership, today released its financial results for the third quarter ended September 30, 2016.

The Partnership's net income for the quarter ended September 30, 2016 was $11.8 million. After taking into account the preferred interest in net income attributable to the unit holders of the 12,983,333 Class B Convertible Preferred Units outstanding as of September 30, 2016 (the "Class B Units" and the "Class B Unitholders"), and the general partner's interest in the Partnership's net income, net income per common unit for the quarter ended September 30, 2016 was $0.07, compared to $0.10 during the previous quarter ended June 30, 2016 and $0.09 during the third quarter of 2015.

Operating surplus prior to capital reserves and distributions on the Class B Units for the quarter ended September 30, 2016 amounted to $61.4 million, an increase of 86\% compared to $33.0 million during the third quarter of 2015 and an increase of 68\% compared to $36.6 million during the second quarter of 2016. Operating surplus for the third quarter of 2016 included the proceeds from the sale of the Hyundai Merchant Marine ("HMM") shares of $29.7 million. The Partnership has put aside $14.6 million in capital reserves for the quarter. As announced on April 26, 2016, the Partnership intends to maintain this capital reserve for the foreseeable future to fully provide for the debt repayments coming due in the next three years, until the end of 2018. Operating surplus after the capital reserve and distributions to the Class B Unitholders was $44.0 million for the third quarter in 2016 or $14.3 million excluding the proceeds from the sale of the HMM shares. Operating surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Please refer to "Appendix A" at the end of the press release for a reconciliation of this non-GAAP measure with net income.

Total revenues for the third quarter of 2016 reached $60.3 million, an increase of 5\% compared to $57.6 million during the third quarter of 2015. The increase was primarily a result of the increase in the size of the Partnership's fleet, partly offset by the off hire periods related to the dry-dockings of the M/T 'Miltiadis M II' and M/T 'Amore Mio II'.

Total expenses for the third quarter of 2016 were $42.4 million compared to $38.9 million in the third quarter of 2015. Total voyage expenses amounted to $3.4 million for the third quarter of 2016, compared to $1.9 million for the third quarter of 2015. The $1.5 million increase in voyage expenses was primarily attributable to the expansion of our fleet, as well as the increase in bunkers consumption, due to the ballast voyages of two of our vessels that underwent special survey and the voyage charters of the M/T 'Arionas' during the third quarter of 2016. Total vessel operating expenses during the third quarter of 2016 amounted to $19.1 million, an increase of 3\%, compared to $18.6 million during the third quarter of 2015. The increase primarily reflects the expansion of our fleet. Total expenses for the third quarter of 2016 include vessel depreciation and amortization of $18.1 million compared to $16.3 million in the third quarter of 2015, an increase of 11\% which is also attributable to the expansion of our fleet. General and administrative expenses for the third quarter of 2016 decreased to $1.8 million, compared to $2.2 million in the third quarter of 2015, primarily as a result of certain one off expenses incurred in the third quarter of 2015.

Total other expense, net for the third quarter of 2016 amounted to $6.1 million, compared to $4.9 million for the third quarter of 2015. Total other expense, net includes interest expenses and finance costs of $6.0 million in the third quarter of 2016, compared to $5.2 million during the third quarter of 2015. The increase primarily reflects higher interest costs incurred during the third quarter of 2016, mainly as a result of higher debt outstanding during the period compared to the same period in 2015.

As of September 30, 2016, total partners' capital amounted to $922.8 million, a decrease of $15.0 million compared to $937.8 million as of December 31, 2015. The decrease primarily reflects distributions declared and paid during the first nine months of 2016 in the total amount of $56.1 million, partially offset by our net income for the nine month period ended September 30, 2016 and the net proceeds from the issuance of common units under our at-the-market equity offering (the "ATM offering").

As of September 30, 2016, the Partnership's total debt increased by $22.0 million to $593.6 million, compared to $571.6 million as of December 31, 2015. The increase was due to a $35.0 million drawdown under our senior secured credit facility with ING Bank to fund the acquisition of the M/V 'CMA CGM Magdalena', which was delivered in February 2016, partially offset by $13.0 million of scheduled loan principal payments under the same credit facility during the first nine months of 2016.

Sale of Hyundai Merchant Marine ("HMM") Shares
As previously announced, HMM, the charterer of five of our container vessels pursued a financial restructuring that was completed in July 2016. Our subsidiaries which currently own vessels under charter with HMM entered into five charter restructuring agreements with HMM on July 15, 2016 that collectively resulted in a charter hire loss of approximately $37.0 million. As compensation, we received approximately 4.4 million HMM common shares, which we sold on the Stock Market Division of the Korean Exchange for aggregate consideration of $29.7 million, after expenses, in August 2016.

The Partnership recognized the HMM common shares at their fair value as of the date of their disposal in August 2016, which was before their listing on the Stock Market Division of the Korean Exchange, for an aggregate consideration of $29.7 million. This amount has been deferred and will be recognized in revenue over the remaining duration of each time charter.

Acquisition of M/T 'Amor' and Increase in our Quarterly Distribution to $0.08 per Common Unit from the Fourth Quarter of 2016
On October 24, 2016, we acquired from our sponsor, Capital Maritime & Trading Corp. ("Capital Maritime"), the eco-type MR product tanker 'Amor' (49,999 dwt IMO II/III Chemical Product Tanker built 2015, Samsung Heavy Industries (Ningbo) Co., Ltd.) for total consideration of $32.8 million. The M/T 'Amor' is employed under a time charter by Cargill at a gross daily rate of $17,500. The Cargill charter commenced in October 2015 with duration of two years +/-30 days. Aggregate consideration for this acquisition consisted of the assumption of a $15.8 million term loan under a new credit facility with ING Bank N.V., $16.0 million in cash and an issuance of new common units to Capital Maritime. The term loan is non-amortizing for a period of two years from the anniversary of the dropdown of the M/T 'Amor' vessel with an expected final maturity date in November 2022. The interest margin on the term loan is 2.50\%. The term loan is subject to ship finance covenants similar to the covenants applicable under our existing facilities. As indicated above, we also issued 283,696 Partnership common units to Capital Maritime at a price of $3.54 per common unit, which was the weighted average unit price for the period from July 14, 2016 to October 14, 2016 and represents a premium of 14\% to the closing price of October 28, 2016.

The purchase of the M/T 'Amor' is an arm's-length transaction that was reviewed and unanimously approved by the conflicts committee of our Board of Directors and our entire Board of Directors.

Considering the positive impact of the expansion of our asset base following the acquisition of the M/T 'Amor', the Board decided to approve an increase by 0.5 cents in our quarterly distribution for the fourth quarter 2016 onwards to $0.08 per common unit.

Fleet Employment Update
The M/T 'Atlantas II' (36,760 dwt, Ice Class 1A IMO II/III Chemical Product Tanker built 2006 Hyundai Mipo Dockyard, South Korea) has been employed on a time charter to Capital Maritime for twelve months (+/- 60 days) at a gross daily rate of $13,000. The new charter commenced on October 17, 2016. The vessel was previously employed under a bareboat charter to BP Shipping Limited at a gross daily rate of $7,250.

The M/T 'Alkiviadis' (36,721 dwt, Ice Class 1A IMO II/III Chemical/ Product, built 2006 Hyundai Mipo Dockyard Company Ltd., South Korea) has extended its employment with CSSA S.A. (Total S.A.) for an additional 12 months (+/- 30 days) at a gross daily rate of $13,300 per day. The charter extension commenced in early August with the earliest charter expiration in July 2017. The vessel was previously earning a gross daily rate of $15,125 per day.

As a result of the new charters listed above and the acquisition of the M/T 'Amor', our charter coverage for the remainder of 2016 and for 2017 has increased to 97\% and 79\%, respectively.

Quarterly Common and Class B Unit Cash Distribution
On October 20, 2016, the Board of Directors of the Partnership declared a cash distribution of $0.075 per common unit for the third quarter of 2016 payable on November 14, 2016 to common unit holders of record on November 7, 2016.

In addition, on October 20, 2016, the Board of Directors of the Partnership declared a cash distribution of $0.21375 per Class B Unit for the third quarter of 2016, in line with the Partnership's Second Amended and Restated Partnership Agreement, as amended. The third quarter of 2016 Class B Unit cash distribution will be paid on November 10, 2016 to Class B Unitholders of record on November 3, 2016.

ATM Offering

In September 2016, the Partnership entered into an equity distribution agreement with UBS Securities LLC ("UBS") under which the Partnership may sell, from time to time through UBS, as its sales agent, new common units having an aggregate offering amount of up to $50.0 million. The equity distribution agreement provides that UBS, when it is acting as the Partnership's sales agent, will be entitled to compensation of up to 2\% of the gross sales price of the common units sold from time to time. We intend to use the net proceeds from the sales of new common units, after deducting the sales agent's commissions and our offering expenses, for general partnership purposes, which may include, among other things, the acquisition of new vessels, the repayment or refinancing of all or a portion of our outstanding indebtedness and funding of working capital requirements or capital expenditures.

Market Commentary
Product & Crude Tanker Markets
The product tanker market experienced lower charter rates in the third quarter of 2016 compared to the previous quarter, as lack of arbitrage opportunities and high product inventories had a negative impact on tonne-mile demand. According to the International Energy Agency, OECD total inventories stood at a record level of 3 billion barrels in July 2016, limiting petroleum product seaborne movements. Year to date we have seen an increased number of product tanker deliveries, which have weighed on the charter market. However, analysts expect this to be the last year of significant vessel deliveries in the Medium Range ("MR") segment, as these are expected to markedly decline from 2017 onwards. On the other hand, strong U.S. gasoline consumption, particularly in the first part of the quarter on the back of the peak summer driving season and rising Chinese product exports supported the product tanker spot market and partly offset weakness in other trading areas.

In the time charter market, MR rates and activity weakened in the third quarter of 2016 as a result of the softer spot market.

On the supply side, there was minimal activity in terms of new orders for product tankers and the orderbook currently stands at 10.7\%, its lowest level since 2000. In addition, the product tanker orderbook continued to experience slippage during the first nine months of 2016, as approximately 27\% of the expected MR and handy size tanker newbuildings were not delivered on schedule. Analysts estimate that net fleet growth in 2016 for MR product tankers will be around 4.4\% in 2016, while overall demand growth will be approximately 4.1\%, as intra-Asian products trade is expected to grow by 5\% in 2016, supported by surging Chinese products exports and firm oil demand in the region.

Suezmax spot earnings declined compared to the previous quarter. The declaration of force majeure for most of the quarter at a number of Nigerian export terminals, as a result of militant attacks on oil facilities, led to a significant decline in the volume of cargoes available for Suezmaxes in the West African market. Concurrently, seasonally weak demand and an increased number of crude tanker newbuilding entering the market kept Suezmax rates under pressure. On the positive side, the Suezmax market was supported by solid Chinese crude imports and increased crude flows from Iran during the third quarter. The Suezmax spot market rebounded however in mid September on the back of a recovery of Nigerian crude exports and higher crude shipments from Russia.

Overall during the period the market remained slow with only limited fixtures reported at decreased rates, due to the depressed spot market.

On the supply side, the Suezmax orderbook represented, at the end of the third quarter of 2016, approximately 19.4\% of the current fleet. However, contracting activity has been subdued, with just eleven Suezmax tankers ordered year to date. Suezmax tanker demand is projected to continue growing in 2016 on the back of firm growth in Chinese and Indian crude imports, partly offset by weaker export volumes from West Africa during the force majeure period. In 2016, crude Suezmax deadweight demand is projected to increase by 1.5\%, whereas the fleet is forecasted to expand by 4.8\%.

Neo-panamax Container Market
The container charter market remained mostly flat when compared to the previous quarter, as most vessel classes' charter rates were close to historically low levels.
The increase in demand for neo panamax vessels due to the new Panama Canal locks was largely offset by disappointing overall growth in demand for containerized cargo, as well as the bankruptcy of Hanjin Shipping, which added new tonnage to the list of idle vessels.

By the end of the third quarter of 2016, the idle container fleet had consequently increased from below 5\% in the previous quarter to 6.7\% at the end of the third quarter of 2016.

Analysts have revised their estimate for the demand for containerized cargo for full-year 2016 down to 3.4\% from 3.8\% in the previous quarter, and their estimate for the increase in tonnage supply for full-year 2016 to 2.2\% from 3.0\% in the previous quarter.

The total container vessel demolition until September 2016 amounted to 446,141 TEU, while the full year forecast points to a record level of recycled container capacity in excess of 500,000 TEU. The average age of scrapped tonnage was 19.1 years, down from 23 years in 2015.

As of the date hereof, the container orderbook stands at 16.4\% of the current fleet, down from 17\% in the previous quarter and is the lowest since 1999, while slippage for 8,000+ TEU container vessels amounted to 35\%.

Overall market participants expect that the container vessel supply picture might improve further, as the weaker rate environment is expected to induce increased slippage of new deliveries and demolition of existing ships.

Management Commentary

Mr. Jerry Kalogiratos, Chief Executive and Chief Financial Officer of the Partnership's General Partner, commented:

"We are pleased to have achieved a number of important milestones during the last few months. First, we concluded our negotiations with HMM and we successfully liquidated the equity compensation received from HMM by recovering approximately 80\% of our total charter hire loss under the Charter Restructuring Agreements. Second, we agreed to acquire a modern, eco MR product tanker from Capital Maritime with an attractive charter to Cargill. We have funded part of the acquisition cost with the proceeds from the sale of the HMM equity compensation. It is also worth highlighting that our sponsor Capital Maritime has received units as part of the purchase price at a significant premium to the latest closing price of our common units. Additionally, we launched the ATM offering for up to $50 million with the aim of raising further capital over a period of time for vessel acquisitions and general corporate purposes.

"Regarding recent market developments, we note that the demand fundamentals for tankers, and especially product tankers, remain solid on the back of refinery capacity relocation, increased tonne-miles, and the low oil price environment. However, the high oil product inventories and the increased supply of tanker vessels has recently weighed on vessel earnings. The limited number of new tanker ordering thus far this year and the rationalization of excess shipyard capacity combined with solid industry fundamentals are positive trends for the tanker markets in the medium- to long-run.

"Finally, we are delighted that with the expected expansion of our fleet, our Board of Directors has approved the increase of our quarterly distribution from the fourth quarter 2016 onwards to $0.08 per common unit. Depending on our access to the financial markets, our objective is to pursue additional accretive transactions going forward and expand our asset base, with a view to further increasing the long term distributable cash flow of the Partnership."

Conference Call and Webcast

Today, October 31, 2016, the Partnership will host an interactive conference call at 10:30 am Eastern Time to discuss the financial results.

Conference Call Details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (U.S. Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Capital Product Partners."

A replay of the conference call will be available until November 7, 2016 by dialing 1 866 247 4222 (U.S. Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 69648481#

Slides and Audio Webcast

There will also be a simultaneous live webcast over the Internet, through the Capital Product Partners website, www.capitalpplp.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About Capital Product Partners L.P.

Capital Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands master limited partnership, is an international owner of modern tanker, container and drybulk vessels. The Partnership currently owns 36 vessels, including twenty-one modern MR (Medium Range) product tankers, four Suezmax crude oil tankers, ten Neo Panamax container vessels and one Capesize bulk carrier. All of its vessels are under period charters to BP Shipping Limited, Cargill International S.A., CMA-CGM S.A., Cosco Bulk Carrier Co. Ltd., CSSA S.A. (Total S.A.), Flota Petrolera Ecuatoriana ("Flopec"), Hyundai Merchant Marine Co. Ltd., Overseas Shipholding Group Inc., Pacific International Lines (Pte) Ltd, Petróleo Brasileiro S.A. ("Petrobras"), Repsol Trading S.A., Stena Bulk A.B., and Capital Maritime.

 www.capitalpplp.com.

ATHENS, GREECE – October 27, 2016 - DryShips Inc. (NASDAQ: DRYS) (the “Company” or “DryShips”), an international owner of drybulk carriers and offshore support vessels, announced the results of its Annual General Meeting of Shareholders (the “Annual General Meeting”) which took place on October 26, 2016.

The following proposals were approved and adopted at the Annual General Meeting:

1.  the election of Mr. George Demathas as Class C Director of the Company to serve until the 2019 Annual General Meeting of Shareholders;

2.   the ratification  of the appointment of Ernst & Young (Hellas) Certified Auditors Accountants S.A., as the Company’s independent auditors for the fiscal year ending December 31, 2016; and

3.   the approval of one or more amendments to the Company's Amended and Restated Articles of Incorporation to effect one or more reverse stock splits of the Company's issued common shares at a ratio of not less than one-for-two and not more than one-for-1000, inclusive, with the exact ratio to be set at a whole number within this range to be determined by the Company's board of directors (the "Board"), or any duly constituted committee thereof, at any time after approval of each amendment in its discretion, and to authorize the Board to implement any such reverse stock split by filing any such amendment with the Registrar of Corporations of the Republic of the Marshall Islands.

The Company also announced today that, pursuant to the authority granted to the Board at the Annual General Meeting, the Board has determined to effect a one-for-15 reverse stock split of the Company’s issued common shares.

The reverse stock split will take effect, and the Company’s common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market, as of the opening of trading on November 1, 2016 under the existing trading symbol “DRYS”.  The new CUSIP number for the common stock following the reverse stock split is Y2109Q309.

When the reverse stock split becomes effective, every fifteen shares of the Company’s issued common stock will be automatically combined into one issued share of common stock. This will reduce the number of issued common shares from 17,025,140 shares to approximately 1.1 million shares. 

No fractional shares will be issued in connection with the reverse split of the issued common stock. Shareholders who would otherwise hold a fractional share of the Company’s common stock will receive a cash payment in lieu thereof at a price equal to that fraction to which the shareholder would otherwise be entitled multiplied by the closing price of the Company’s common stock on the Nasdaq Capital Market on October 31, 2016.

Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after November 1, 2016. Such beneficial holders may contact their bank, broker, or nominee for more information.

Shareholders with shares held in certificate form will receive instructions from the Company’s exchange agent, American Stock Transfer & Trust Company, LLC, for exchanging their stock certificates for a new certificate representing the shares of common stock resulting from the reverse split.

Additional information about the reverse stock split can be found in the Company’s proxy statement furnished to the Securities and Exchange Commission on September 20, 2016, a copy of which is available on the Commission’s website at www.sec.gov.  

About DryShips
DryShips Inc. is an owner of drybulk carriers and offshore support vessels that operate worldwide. DryShips owns a fleet of 18 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.3 million tons, and 6 offshore supply vessels, comprised of 2 platform supply and 4 oil spill recovery vessels.

DryShips’ common stock is listed on the NASDAQ Capital Market where it trades under the symbol “DRYS.”

www.dryships.com. 

Yesterday, the IMO’s Marine Environment Protection Committee (MEPC) reached an agreement in favour of maintaining the deadline of 2020 for introducing a global cap of 0.5\% sulphur content in marine fuels.

ESPO congratulates IMO on its decision. By setting 2020 as deadline for this global 0.5\% sulphur cap, the IMO timing is being aligned with the EU timing as foreseen in the current Sulphur Directive. This will mean equal rules for EU and its neighbouring countries.

European ports are also convinced of the environmental and public health benefits of this reduction target.

“It is clear that limiting the sulphur exhaust emissions can have an enormous impact on the local air quality. This decision thus means a big step forward for the maritime and port industry and the people around the ports.  In fact, 90\% of European ports are very close to urban areas. Moreover, by maintaining 2020, IMO shows that an ambitious greening agenda is possible at global level. We must hope that IMO will demonstrate the same level of ambition when addressing climate change”, says ESPO’s Secretary General Isabelle Ryckbost. 

ESPO