NASDAQ-listed Paragon Shipping has sold its panamax bulk carrier Kind Seas for US$3.5m in cash to an unnamed buyer.

The net proceeds from the Japan-built bulker's sale will be used to make an immediate prepayment of Paragon's loan facility with the Bank of Ireland, which was secured in 2009.

Following the prepayment, the Athens-based shipping company still has US$4.4m left to pay under the loan, of which US$2.2m is to be written-off and another US$2.2m (plus interest) has been converted into an unsecured paid-in-kind (PIK) note.