Athens: Star Bulk has disclosed the pricing and the number of shares being sold in its latest direct public share offering, which could raise up to $180m for the carrier – $30m more than the figure mooted earlier today.
The NASDAQ-listed carrier will offer 56,250,000 of its common shares at a price of $3.20 per share. At the time of writing, the stock is trading at around $3.72 per share.
The offering is expected to close on May 18, subject to customary conditions.
Of these shares, approximately 21,562,500 are expected to be purchased by major shareholders Oaktree Capital Management, Monarch Alternative Capital and entities affiliated with the family of Star Bulk’s CEO Petros Pappas.
“On an as-adjusted basis, giving effect to this offering and assuming all 29,917,312 common shares comprising the share consideration issued to Excel Maritime Carriers, pursuant to the vessel purchase agreement by and among the Company, Excel and Christine Shipco Holdings Corp, dated August 19, 2014, are distributed by Excel to its equity holders, Oaktree, Monarch and the Pappas affiliates would beneficially own approximately 52.5%, 5.2% and 5.8%, respectively, of our outstanding common shares,” Star Bulk said today.
The net proceeds will be used to help fund the Athens-based company’s newbuilding programme. The carrier currently has 28 bulk carriers under construction, mostly in China, of which 19 are capesize, seven are ultramax and two are supramax.
The rest will be used for general corporate purposes, as Splash reported earlier today.
Clarksons Platou Securities and DVB Capital Markets will act as book-running managers, with ABN AMRO, BNP PARIBAS, Credit Agricole CIB and SEB acting as co-managers for the offering.