Arctic: Credit Daily - Varel, Diana Shipping, Scatec, DNO, Kistos, Ellos+++

Research evidence excerpt

Arctic: Credit Daily - Varel, Diana Shipping, Scatec, DNO, Kistos, Ellos+++

Credit Daily

18 June 2026 | 08:18

Varel, Diana Shipping, Scatec, DNO, Kistos, Ellos+++ Key figures & indices Arctic HY Index

Varel: Amendment proposal

Varel is seeking bondholder approval for a temporary covenant reset on its senior secured 2028

bond, alongside a USD 6.5m subordinated capital injection and a 1.0% cash consent fee. The

proposal raises the leverage covenant to 3.50x for Q2 2026, 3.25x for Q3 and 3.00x for Q4, before

reverting to 2.50x from Q1 2027, reflecting near-term headroom pressure after a weak 2025 and

lower activity in the start of 2026. Owners will inject subordinated capital to fund cash collateral for

increased performance guarantees tied to new Middle East contract execution. Up to 50% of the

injected funds will be available for bond repurchase once the cash collateral has been released.

Bondholders receive both a 1% consent fee and improved late-call protection via a 101% (vs 100%)

call premium in the final six months before maturity. The amendment proposal has already secured

support from more than 2/3 of bondholders. Please note that Arctic Securities acted as advisor to

the company in connection with the amendment process.

Diana Shipping: Raises Genco offer and increases the likelihood for a deal

Diana has raised the offer for Genco to an implied value of USD 27.34/sh, consisting of USD 24.8/

sh per share in cash plus one Diana share valued at USD 2.54/sh based on the 30 days WVAP.

The offer is up from USD 24.8/sh in cash, meaning that the Diana share is the added component.

In connection with the offer, Diana has formally requested that the AGM currently scheduled for

18 June is delayed in order to give shareholder sufficient time to evaluate the offer. Genco is