Scorpio Bulkers to Launch USD 230 Million Common Stock Offering
- Business & Finance
The NYSE-listed dry bulk specialist Scorpio Bulkers intends to offer, issue and sell up to USD 200 million of its common stock, par value USD 0.01 per share, through an underwritten public offering.
All or substantially all of the net proceeds of the offering are expected to be used to fund installment payments due under Scorpio’s newbuilding program.
Any net proceeds not used for installment payments are expected to be used for general corporate purposes and working capital.
As part of this offering, the underwriters have reserved for sale up to USD 15 million of common shares to Scorpio Services Holdings Limited and certain executive officers of the company at the public offering price.
The company also intends to grant the underwriters a 30-day option to purchase up to an additional USD 30 million of common shares.
Last week, Scorpio resold five more of its newbuildings currently under construction in China and Romania for a combined price of USD 236 million, bringing the total number of newbuilding resales to sixteen.