Star Bulk shoots for more

11.01.2015

Star Bulk Carriers has upsized an equity offering aimed at funding a vast newbuilding orderbook.



Star Bulk's Spyros Capralos and Petros Pappas.

Star Bulk’s Spyros Capralos and Petros Pappas.




Nasdaq-listed Star Bulk today priced the sale of 49,000,418 shares at $5.00 each.


Its potential $245m pot exceeds the $200m outlined when the owner revealed the issue yesterday.


Ben Nolan of Stifel, said in a report today that the company will be left with $237.7m from the primary sale after costs.


He said: “While we feel the company has addressed its funding gap, any additional liquidity needs could be met through the sale of the company’s older vessels that were built before 2000, which encompasses 13 vessels.”


As TradeWinds reported last night, leading shareholders Oaktree Capital, Angelo Gordon, Monarch and Petros Pappas are buying into the sale.


The latest information is that they will collectively buy 37,250,418 shares, a bundle worth $186.25m. Previously they were set for a near $150m contribution.


Oaktree will remain the dominant shareholder in Star Bulk after the issue with a 58\% slice, the owner says. The two funds will have 5.9\% each and Pappas 7.8\%. These figures will be marginally trimmed should underwriters take their options.


The $200m initial target was suggested to have been sufficient to bridge the owner’s funding gap by Noah Parquette of Canaccord Genuity.


After two major deals last summer Star is one of the largest bulker names on Wall Street, with 102 vessels, including 34 under construction.


Jefferies and Morgan Stanley are the main underwriters of the issue.





source:www.tradewindsnews.com

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