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31, 2016, 84,588 Notes or approximately 11.3498\% of the outstanding Paragon Notes were delivered and not validly withdrawn from the Exchange Offer.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.