zoomImage Courtesy: Diana Shipping

Greek dry bulk owner Diana Shipping has priced its underwritten public offering launched earlier this week as the company eyes fresh funds to cover the acquisition costs of additional dry bulk vessels.

The 17,500,000 common shares, par value USD 0.01 per share, were priced at USD 4 per share.

The company has granted the underwriters an over-allotment option for a period of 30 days from the closing of this offering to purchase up to an additional 2,625,000 shares of common stock at the public offering price, less underwriting discounts.

As part of the offering, entities affiliated with Simeon Palios, the company’s Chief Executive Officer and Chairman, executive officers and certain directors, have agreed to buy 5,500,000 common shares at the public offering price.

Diana Shipping said that the offering is expected to close on April 26, 2017, subject to customary conditions.

The net proceeds of the offering would fund vessel acquisitions including two 2013-built Post-Panamaxes and one 2013-built Kamsarmax dry bulk vessel that Diana Shipping agreed to purchase from unaffiliated third parties. These transactions are subject to approval by the board of directors.

Any net proceeds from the offering not used for vessel acquisitions will be used for general corporate purposes, the company said.