Paragon Shipping offers stock in exchange for 8 3/8% notes due 2021

By Susanna Moon

Chicago, Sept. 7 – Paragon Shipping Inc. said it is offering to issue stock in exchange for its 8 3/8% senior notes due 2021.

In the exchange, holders will receive six shares of common stock for each Paragon note issued in $25.00 denominations, which includes accrued interest, according to a company announcement.

Holders who tender their notes for exchange by Oct. 6 will receive an early delivery premium of two shares, for a total of eight common shares per Paragon note, which includes accrued interest.

The exchange offer and consent solicitation will run until 11:59 p.m. ET on Oct. 14.

Paragon notes tendered before the early deadline may not be withdrawn.

Settlement for early tendered notes will be Oct. 11, and settlement for all other tenders will be Oct. 19.

Holders who tender will be required to consent to the removal of certain covenants and sections of the note indenture.

The company’s stock (OTCBB: PRGNF) last closed at $0.72 on June 3.

Georgeson is the information agent (866 857-2624).

Paragon is an Athens-based shipping company specializing in the transportation of drybulk cargo.

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