NAT to Finance Fleet Expansion by Selling Shares
- Business & Finance
Bermuda-based tanker owner Nordic American Tankers Limited (NAT) has launched an underwritten public offering in an effort to finance the expansion of its fleet.
Namely, the company is offering up to 11 million common shares at a price of USD 10 per share, and a 30-day option for underwriters to purchase up to an additional 1.65 million common shares.
The underwriters have reserved for sale an aggregate of 534,000 common shares to all the members of the company’s board of directors, certain members of NAT’s management and all its advisors.
The 534,000 common shares include approximately 100,000 shares to be purchased by NAT’s Chairman and Chief Executive Officer and 400,000 shares to be purchased by the company’s Vice Chairman.
Furthermore, during the period August 17 – 22, 2016, the company’s Chairman and Chief Executive Officer purchased 210,000 common shares, in total worth USD 2.3 million at the time.
NAT said that the net proceeds from the offering will also be used for general corporate purposes, or may be used to repay borrowings under its revolving credit facility pending application towards other uses immediately following the offering.
On September 23, 2016, the closing price of NAT’s common shares on the New York Stock Exchange was USD 10.85 per share.
Morgan Stanley & Co. LLC is acting as the bookrunning manager for the offering and DNB Markets, Inc. and Skandinaviska Enskilda Banken AB (publ) are acting as co-managers of the offering.
The company owns 30 double-hull Suezmax tankers, one of which is to be delivered in the first quarter of 2017.