FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May 2006
DRYSHIPS INC.
80 Kifissias Avenue
Amaroussion 15125, Athens Greece
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 1 is a copy of the press release issued by DryShips
Inc. on May 10, 2006.
This Report on Form 6-K is hereby incorporated by reference into the prospectus,
filed on May 3, 2006, contained in the Company's effective "Shelf" Registration
Statement on Form F-3 (File No. 333- 133482).
Exhibit 1
DryShips Inc. Announces the Acquisition of its 29th Vessel
and the Financing Terms of its Acquisition of m.v. Hille Oldendorff
May 10, 2006 ATHENS, Greece - DryShips Inc. (Nasdaq: DRYS), announced today that
it has scheduled to take delivery of m.v. Atacama a 2001 built, 75,941
deadweight ton, or dwt, Panamax drybulk carrier on Thursday, May 11, 2006. The
vessel will be renamed Maganari.
Upon delivery, Maganari will immediately be employed under the existing
timecharter at a daily rate of $29,000 until February 2007 and thereafter at a
daily rate of $18,400 until February 2008.
This vessel will be purchased from an unaffiliated third party for an aggregate
purchase price of $35.4 million. The vessel will be financed with a draw down of
$35.4 million under our new credit facility with HSH and Bank of Scotland,
together with a short term loan of $8.84 million provided by a company
controlled by Mr. George Economou, DryShips' Chairman and Chief Executive
Officer. The $8.84 million unsecured fully subordinated loan will bear interest
at an amount of $100,000 per calendar month, beginning on June 11, 2006. This
loan has a maturity date of December 31, 2006. The terms of this loan have been
approved by the Audit Committee of the Board of Directors.
The Maganari will be the second vessel acquisition to be partly financed under
the new credit facility with HSH and Bank of Scotland following the acquisition
of m.v. Hille Oldendorff in April 2006. The Hille Oldendorff was acquired from a
company controlled by Mr. George Economou for an aggregate purchase price of
$40.76 million. The $40.76 million purchase price consists of the affiliated
seller's purchase price in October 2005 ($39.85 million), pre-trading expenses
and finance charges and the payment of a $500,000 option fee to the affiliated
seller. This vessel was financed in part by $26.7 million under our new credit
facility with HSH and Bank of Scotland, together with a short term loan of $3.25
million provided by the affiliated seller of the vessel. The $3.25 million
unsecured fully subordinated loan bears interest at a rate of LIBOR plus a
margin of 1.50% and matures between December 24, 2006 and March 24, 2007.
"The provision of finance by our affiliates again clearly demonstrates the
commitment to DryShip's growth. In addition it enables DryShips to take delivery
of vessels earlier than otherwise could be achieved and allow the Company to
benefit immediately from the favorable timecharters" stated Mr. Economou.
About DryShips Inc.
DryShips Inc. owns and operates through its wholly owned subsidiaries a fleet of
drybulk carriers that operate worldwide. As of the date of this announcement,
DryShips owns a fleet of 29 drybulk carriers consisting of 4 Capesize, 22
Panamax and 3 Handymax vessels, with a combined carrying capacity of
approximately 2.3 million dwt. DryShips, which maintains its executive offices
in Greece, is the second largest Panamax operator in the world. DryShips Inc.'s
common stock is listed on the Nasdaq National Market where it trades under the
symbol "DRYS".
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of historical
facts. The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although DryShips Inc. believes that these assumptions were reasonable
when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, DryShips Inc. cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections. Important factors that,
in our view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of world
economies and currencies, general market conditions, including changes in
charterhire rates and vessel values, changes in demand that may affect attitudes
of time charterers to scheduled and unscheduled drydocking, changes in DryShips
Inc. operating expenses, including bunker prices, dry-docking and insurance
costs, or actions taken by regulatory authorities, potential liability from
pending or future litigation, domestic and international political conditions,
potential disruption of shipping routes due to accidents and political events or
acts by terrorists. In addition, availability of financing could be affected by
failure to complete definitive documentation, and the ability to acquire vessels
could be affected by non-performance of a counterparty. Risks and uncertainties
are further described in reports filed by DryShips Inc. with the US Securities
and Exchange Commission.
Visit our website at www.dryships.com. Information contained on our website does
not constitute a part of this press release.
Company Contact:
Christopher J. Thomas
Chief Financial Officer
DryShips Inc.
Tel. 011-30-210-809-0570
E-mail: management@dryships.com
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: nbornozis@capitallink.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DryShips, Inc.
---------------------------------
(Registrant)
Dated: May 10, 2006 By /s/ Christopher Thomas
--------------------------
Christopher Thomas
Chief Financial Officer
23113 0002 668737