A NASDAQ-listed dry bulk specialist Star Bulk Carriers plans to make a public offering of USD 150 million of its common shares to bankroll its newbuilding program and cover some of the operating expenses, the company said in a release.
Star Bulk plans to use the cash to increase its working capital, cover capital expenditures, repay its debts, or to finance possible acquisitions and investments.
Oaktree Capital Management, Monarch Alternative Capital and entities affiliated with the family of Star Bulk’s CEO Petros Pappas, the three of Star Bulk’s significant shareholders, have expressed an interest in purchasing a substantial amount of common shares in this offering, Star Bulk says.
But the company warns that while Oaktree, Monarch and the Pappas Affiliates have expressed interest in purchasing common shares in the offering, there can be no assurance that any of them will actually participate in the offering.
The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.
Star Bulk’s fleet currently includes 70 operating vessels and 27 newbuilding vessels under construction at shipyards in Japan and China. All of the newbuilding vessels are expected to be delivered during 2015 and 2016.
On a fully delivered basis, Star Bulk will have a fleet of 97 vessels, with an aggregate capacity of 11.3 million dwt.