DryShips Pulls Plug on Notes Offering
DryShips Inc., has withdrawn its previously announced public offering of USD 700 million of its senior secured notes, for which the company hoped would help cover the outstanding convertible notes, eliminating the need for a bridge facility.
George Economou, the company’s Chairman and Chief Executive Officer, said that the reason for withdrawal is the current market conditions which were deemed not best for the company.
“We continue to work on our plan to re-finance the USD 700 million, 5% convertible notes that are maturing on December 1, and we have earlier today signed the firm commitment letter from ABN for the bridge facility of up to USD 350 million, which now only remains subject to final documentation.
This, together with cash in hand and the previously announced Nordea refinancing which would result in about USD 100 million of net proceeds, considerably narrows our actual funding gap and provides a clear path forward that makes us confident we will be able to refinance our convertible notes in a timely manner,” said Economou.