Navig8 Product Tankers Inc. has closed the book for a private placement (the Private Placement) for gross proceeds of $150 million at a subscription price of USD 10.50 per share. The net proceeds from the Private Placement will be used to, inter alia, fully finance the equity portion related to the construction of four new ECO LR2 tankers to be built at Guangzhou Shipyard (GSI).
The four new ECO LR2 tankers will be ordered by use of existing newbuilding options with GSI and have identical specifications as the company’s firm vessels already on order with GSI. Earlier deliveries have been negotiated with GSI such that the delivery dates for the four new tankers move up two months (compared to the newbuilding option contracts) for average delivery during June 2016 provided that the company exercises further options which have been granted to it to order two further ECO LR2 tanker newbuidlings from GSI.
Such two further newbuilding options from GSI are for delivery in October and December 2016.
After completion of the Private Placement the company will have 31,580,952 shares in issue. The new shares are expected to be issued and delivered on or about 31 October 2013.
Press Release, October 24, 2013