Greek dry bulk shipping company Star Bulk Carriers has priced its underwritten public offering of over 11.9 million of its common shares at a price of USD 4.30 per share, in an effort to raise up to USD 51.5 million of fresh funds.
The company expects the offering to close on September 20, 2016, subject to customary conditions.
The net proceeds from the offering would be used for general corporate purposes, Star Bulk said.
Oaktree Capital Management, L.P., Caspian Capital LP and the Petros Pappas, Chief Executive Officer of Star Bulk, the company’s three significant shareholders, are expected to purchase some 7.7 million of the common shares in the offering.
Star Bulk said that, on an as-adjusted basis, giving effect to this offering, Oaktree, Caspian and the Pappas Affiliates, will beneficially own 51.8%, 6.6% and 5.8%, respectively, of its outstanding common shares.
Citigroup, Clarksons Platou Securities, Deutsche Bank Securities and DNB Markets are acting as book-running managers for the offering.
The pricing was made as Star Bulk entered into a restructuring agreement with all 15 of its lenders under which some USD 223.9 million in debt principal repayments would be postponed until June 30, 2018.
The agreement is expected to help the company“successfully weather current market conditions even if they were to last well into 2019,” and positions Star Bulk Carriers to take advantage of a subsequent market upturn, Pappas earlier said.