Star Bulk Proposes $75 million Backstopped Equity Rights Offering

MarineLink.com
Thursday, May 02, 2013

Star Bulk Carriers Corp. announced that its Board of Directors approved a backstopped equity rights offering, which will allow the company to raise equity capital through the sale of its commonshares. The proceeds are expected to be primarily used for orders for fuel-efficient dry bulk vessels with some of the proceeds being reserved for working capital and general corporate purposes.

The company said it plans to raise gross proceeds of $75 million through a backstopped equity offering of 14,018,692 common shares only to holders of record of its common shares as of the close of business on May 15, 2013. In connection with this offering, the company will distribute, at no charge, to the record date holders one non-transferable subscription right to purchase the offered shares for each common share owned on the record date.
For each subscription right, a record date holder will be entitled to purchase 2.5957 common shares at a subscription price of $5.35 per share, which is referred to as the subscription privilege. The per share subscription price was determined by Star Bulk’s board.

The offering is backstopped by investment funds managed by Oaktree Capital Management L.P. or its affiliates, a Los-Angeles-based investment firm with approximately $77.1 billion of assets under management as of December 31, 2012, investment funds managed by Monarch Alternative Capital LP, a New-York-based investment firm with approximately $5.5 billion of assets under management, Blue Shore Global Equity Fund L.P., Far View Partners L.P. and other third party investors and existing shareholders, including certain of our directors including Ms. Milena Pappas, and our executive officers, including our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer. Subject to certain conditions, Oaktree and Monarch will each have the right to nominate, subject to the approval of the company’s nominating committee, one director for the board.

In consideration for providing its backstop commitment, the company has agreed to issue to each backstop investor that is not an affiliate of the company immediately prior to the completion of the rights offering a number of additional common shares equal to 3% of its backstop commitment . In addition, the company has guaranteed certain backstop investors minimum participation amounts which, depending on the participation level of the record date holders, could cause the amount of shares to be issued and the gross proceed s raised to exceed $75 million.

Evercore Partners is acting as financial advisor to the company, and Seward & Kissel LLP is acting as the company’s legal advisor. Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as Oaktree’s legal advisor, and Willkie Farr & Gallagher LLP is acting as Monarch’s legal advisor.

The company has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) with respect to this rights offering. Subject to review of the registration statement by the SEC, the company intends to commence the rights offering during the second quarter of 2013. The subscription rights will expire worthless 20 business days after the commencement of the rights offering, unless the company extends the rights offering period or the rights offering is terminated.

A copy of the prospectus, the registration statement and additional materials related to the rights offering are expected to be mailed following the effectiveness of the registration statement to holders of the company’s common shares as of the record date. Before you invest, you should read the prospectus and the registration statement, including all of the documents incorporated by reference therein and other documents the company has filed with the SEC for more complete information about the company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the company will arrange to send you the registration statement, including the prospectus if you request it by calling the information agent for the offering, Advantage Proxy Inc., toll-free at 877-478-5038 or if you are a bank of broker, 206-870-8565.

www.starbulk.com
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

Bulk Carrier Trends

Cargill: 50,000T of Sugar Affected by Brazil Fire

Approximately 50,000 tonnes of sugar were stored in a warehouse affected by fire in the Teag terminal in Brazil on Monday, Cargill Inc said in a statement. The terminal,

Simushir Under Tow by Barbara Foss

Foss Maritime's ocean-going tug, the Barbara Foss, is towing the Russian cargo vessel, Simushir, which lost power late Thursday night off the west coast of Haida Gwaii.

Vancouver Welcomes Bulker on Her Maiden Voyage

The Port of Vancouver USA welcomed the M/V Jobst Oldendorff, commanded by Capt. Baisie of Ghana, on her maiden voyage October 16. Capt. Baisie and his 21-member

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2079 sec (5 req/sec)