Diana Shipping: Credit Perspective Establishes Attractiveness Of 9.0% Preferred Shares Yield

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About: Diana Shipping Inc. (DSX)
by: Disruptive Investor
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Disruptive Investor
Long/short equity, Deep Value, event-driven, macro
Summary

Even as leverage is high for Diana Shipping, a decent EBITDA interest coverage implies smooth debt servicing.

Low loan-to-value and ample covenant headroom provides financial flexibility for growth at a time when industry outlook is improving.

Recovery in day rates for dry bulk carriers has translated into higher EBITDA margin and cash flows. Industry recovery likely to continue at a gradual pace.

Equity shares have also moved higher, and outlook for common shares also remains positive.

Investment Overview

As sentiments gradually improve for dry bulk carriers, there are interesting stock picks in the industry segment. This article will discuss the credit perspective for Diana Shipping (NYSE:DSX) with focus on