DryShips said to be seeking financing

DryShips Inc, the shipper that has a $700 million convertible note due December 1, is negotiating with banks for a loan that would help repay the debt after it canceled a bond offering over the weekend, according to two people with knowledge of the company’s plans.

The owner of dry-bulk ships and drilling rigs would use the financing in addition to sources that include a $350 million bridge loan from ABN Amro Group NV, $100 million available in a credit line from Nordea Bank AB, cash on hand as well as a funding commitment from Chief Executive Officer George Economou, said the people, who asked not to be identified because the negotiations are private.

Shares of the carrier plunged 21 percent to $1.47 on Tuesday after Athens-based DryShips said in a statement on Monday that it pulled a $700 million offering of secured notes meant to refinance the December obligation.

The new loan would be secured by assets tied to its Ocean Rig UDW Inc unit, one of the people said. [Bloomberg]