DryShips Collects USD 100 Mn from Rights Sale

Greek shipowner DryShips has raised USD 100 million of gross proceeds from its rights offering of shares, the company said.

The gross proceeds amount includes a USD 99.2 million investment by Sierra Investments, which is affiliated with DryShips’ Chairman and Chief Executive Officer, George Economou, the company said.

Namely, DryShips inked a backstop purchase agreement with Sierra, pursuant to which Sierra committed to buying common stock shares that are not issued to existing shareholders.

The offering, which expired on October 2, 2017, saw DryShips’ common stock shares priced at par value of USD 0.01 per share.

Each subscription right entitled their respective holder to a right to purchase approximately 1.1526 shares at a subscription price of USD 2.75 per share.

As disclosed, rights holders subscribed for an aggregate of 305,760 shares of common stock and the company raised approximately USD 0.8 million of gross proceeds therefrom, while some 36,057,876 shares will be issued to Sierra.

The company said the common stock shares would be delivered to their subscribers on October 4, 2017.

DryShips intends to use the cash proceeds for vessel acquisitions and repaying of Sierra credit facility in addition to general corporate purposes.

Following the closing of the rights offering, the amount outstanding under the Sierra credit facility will be USD 73.8 million and the facility is expected to be refinanced with a new secured loan facility with Sierra.

Additionally, the total number of shares of common stock outstanding will be 104,274,708, while entities affiliated with Mr. Economou, will beneficially own approximately 69.5% of the issued and outstanding common stock, the company informed.