Scorpio Bunkers Raises Cash to Finance Newbuilds

  • Business & Finance

Scorpio Bunkers Completes Raising Funds for Newbuilds

Scorpio Bulkers completed a private placement of 33,400,000 new ordinary shares of $0.01 par value at a subscription price of NOK 53.50, raising approximately $300 million in gross proceeds (the Private Placement). The proceeds from the Private Placement will be used to partly finance construction of a series of fuel efficient dry bulk vessels and for general corporate purposes.

The Company recently reached agreements with ChengXi Shipyard CO. Ltd. (ChengXi), Dalian COSCO KHI Ship Engineering Co. Ltd. (DACKS), and Nantong COSCO KHI Ship Engineering Co. Ltd. (NACKS) for the construction of a minimum of 11 and up to 14 dry bulk vessels for approximately $27 million each.

The vessels range from 61,000 to 64,000 DWT (Ultramax vessels) designed for the carriage of dry bulk commodities. Of the first 11 vessels, 2 will be delivered in the first quarter of 2015, 1 in the second quarter of 2015, 5 in the third quarter of 2015, 2 in the fourth quarter of 2015, and 1 in the first quarter of 2016.

RS Platou Markets AS acted as Sole Manager in the Private Placement.


Scorpio Bulkers, September 25, 2013

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