Ultrapetrol Reports Loss
New York-listed ship and barge Ultrapetrol Ltd. (ULTR) has reported a loss of $5.1 million in its first quarter. The Nassau, Bahamas-based company said it had a loss of 4 cents per share. Losses, adjusted for non-recurring costs, were 3 cents per share. The industrial transportation company posted revenue of $84.6 million in the period. In the final minutes of trading on Thursday, the company's shares hit $1.20. A year ago, they were trading at $2.92. Damian Scokin, Ultrapetrol's President and Chief Executive Officer, stated, "During a first quarter of 2015 that was marked by challenging market conditions for both of our core segments, we continue to believe that there are significant opportunities to unlock Ultrapetrol's full potential.
Moody's Downgrades ACL
Moody's Investors Service downgraded the ratings of American Commercial Lines LLC's $535 million senior secured bank facility to B1 from Ba2 and the $300 million 10.25% senior unsecured notes to B3 from B1. The Senior Implied rating was lowered to B2 from Ba3 and the issuer rating was lowered to Caa1 from B2. The rating outlook was changed to stable from negative. The ratings downgrades is prompted by the substantial deterioration in operating performance resulting from a reduction in grain exports to Asia, higher fuel costs, and low water levels and unusual ice conditions on its U.S. transport routes which severely impacted the fourth quarter of 2000.
Ultrapetrol Sets IPO of 12.5m Shares
Ultrapetrol Ltd., a Bahamas-based shipping company, is scheduled to go public next week with an initial public offering of 12.5 million shares. Shares are expected to price between $13 and $15 per share and trade on the Nasdaq under the symbol "ULTR." Assuming shares price in the middle of that range, the company expects to raise net proceeds of about $160.2 million. The company plans to use most of the proceeds to repay debt, although Ultrapetrol said it earmarked $20 million to help fund construction of two platform supply vessels being built in Brazil. It plans to use another $17.3 million for general corporate purposes. Ultrapetrol operates four business segments: river, offshore supply, ocean and passenger.
