Safe Bulkers Collecting Funds to Buy Secondhand Ships

Dry bulk shipping company Safe Bulkers has unveiled plans to offer its common stock in an effort to raise funds for the acquisition of secondhand vessels.

With a par value of USD 0.001 per share, the public offering would include a 30-day option which would be granted to the underwriters to purchase additional common stock “solely to cover over-allotments, if any,” Safe Bulkers said.

Additionally, the company informed that an entity owned and controlled by Polys Hajioannou, the chief executive officer of the shipping firm, will invest in Safe Bulkers’ common stock through the purchase of shares either in the public offering or through a private placement.

The net proceeds of the offering would also be used for capital expenditures and other general corporate purposes, which may include repayment or settlement of Safe Bulkers’ financial obligations.

In early October, Safe Bulkers opted to sell two newbuilding vessels, the Japanese Panamax class vessel and the Kamsarmax class vessel, to entities owned by Hajioannou for a total of USD 48.2 million.

Scheduled to be delivered in the first quarter of 2017, the Panamax and the Kamsarmax were appraised by independent third party brokers at USD 21.5 million and USD 24.5 million, respectively.

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