Excel Maritime Carriers Ltd. (NYSE: EXM) announced the pricing of its offering of $125,000,000 aggregate principal amount of Convertible
Senior Notes due 2027 to qualified institutional buyers in accordance with Rule 144A under the
Securities Act of 1933. Excel Maritime also granted the initial purchaser of the notes an option
to purchase up to an additional $25,000,000 aggregate principal amount of notes solely to cover
over-allotments, if any. The issuance of the notes is expected to close on October 10, 2007.
If certain conditions are met, the notes will be convertible into cash, shares of Excel
Maritime’s Class A common stock or a combination of cash and Class A common stock, at
Excel Maritime’s option.
The notes will pay interest semiannually at a rate of 1.875% per annum. The notes will be
convertible at a base conversion rate of approximately 10.9529 shares of Class A common
stock per $1,000 principal amount of notes. The initial conversion price is set at $91.30 per
share. There is also an incremental share factor of 5.4765 shares of Class A common stock per
$1,000 principal amount of notes.
Excel Maritime estimates
that the net proceeds from the offering of notes will be
approximately $121.3 million after deducting the initial purchaser's discount and estimated
offering expenses (approximately $145.7 million if the initial purchaser exercises in full the