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

People & Company News

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Bulk Carrier Trends

Commodity Giant Steps out of the Shadows

A detailed new case study scrutinizing the risk-management Swiss-based Trafigura is the latest effort to "demystify" the once-secretive commodity trading industry,

Cargill to Buy 100,000mt of Certified Ivorian Cocoa

U.S. agribusiness trader Cargill aims to purchase 100,000 metric tons of certified Ivorian cocoa this season, up slightly from 95,000 metric tons last season, West

Ice Hurts March’s Lakes Ore Shipments

Massive, thick ice formations on the Great Lakes limited iron ore shipments in March to 1.1 million tons, a decrease of 43 percent compared to a year ago, the Lake

Finance

Saudi SABIC Q1 Profit Falls 1.8 % On Product Prices

Profit at Saudi Basic Industries Corp (SABIC), one of the world's biggest petrochemical firms, slipped 1.8 percent in the first quarter of this year as lower

India's Reliance Q4 Sales Rise

Indian energy company Reliance Industries Ltd posted nearly flat fourth-quarter profits, in line with estimates, as a slimmer margin in its oilrefining business offset higher revenue.

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.1892 sec (5 req/sec)