Bermuda-based tanker shipping company Nordic American Tankers (NAT) has inked a new agreement that allows the company to sell up to USD 40 million worth of its common shares.
On March 29, 2019, NAT entered into an At-The-Market Issuance Agreement (ATM) with B. Riley FBR, an investment banking firm headquartered in Los Angeles, Califonia, as the sales agent.
Under the new agreement and over a period of about three years, the shipping company may, at its discretion during the term of the ATM, sell up to a maximum of USD 40 million of common shares.
The ATM sales, if any, will be made at market prices, according to NAT.
As explained, the establishment of the ATM arrangement is in harmony with the conservative financial policy of NAT and the company is not obliged to dispose of its shares under the agreement.
“The ATM arrangement is a tool for NAT to ascertain that we have financial flexibility at all times,” the company said in a statement.
NAT’s fleet currently comprises 23 Suezmax tankers with an aggregate cargo capacity of 23 million barrels of crude oil and an average age of 10.8 years.