Star Bulk share offering nets $176m

Star Bulk share offering nets $176m

Athens: Star Bulk’s latest public offering of common shares has hit its target, raising net proceeds of $176m and grossing $180m.

The NASDAQ-listed carrier placed 56,250,000 common shares at a price of $3.20 per share in an offering that closed yesterday.

Of these shares, approximately 21,562,500 (with a gross aggregate value of $69m) were purchased by Star Bulk’s existing major shareholders Oaktree Capital Management, clients of Monarch Alternative Capital and entities affiliated with Star Bulk CEO Petros Pappas’ family.

On an as-adjusted basis following Star Bulk’s purchase of Excel Maritime Carriers, the purchase has increased Oaktree’s beneficial ownership of Star Bulk shares to 52.5%; Monarch’s ownership to 5.2% and the Pappas affiliates’ stake to 5.8%, the company said.

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.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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