Proceeds of the offering are expected to be used to fund the acquisition costs of additional dry bulk vessels and general corporate purposes.
Dry bulk vessel owner Diana Shipping launched an underwritten public offering of $70 million of common shares.
The global shipping company said it intends to grant the underwriters a 30-day over-allotment option once the offer closes to purchase up to an additional $10.5 million of common shares.
As part of the offering, entities affiliated with Diana Shipping Chairman and CEO Simeon Palios, executive officers, and certain directors have agreed to purchase about $20 million of common shares at the public offering price.
Net proceeds of the offering are expected to be used to fund the acquisition costs of additional dry bulk vessels, and any proceeds not used for vessel acquisitions will be used for general corporate purposes.
The vessel acquisitions include two 2013-built post-Panamax dry bulk vessels and one 2013-built Kamsarmax dry bulk vessel, all of which are being purchased from unaffiliated third parties.
The acquisition of the three vessels, which Diana Shipping expects to take delivery of in June 2017, is subject to approval by its board of directors.
Wells Fargo Securities, LLC and Clarksons Platou Securities, Inc. are acting as joint book-running managers in the offering, while BNP Paribas Securities Corp. is acting as co-lead manager.
Based out of Athens, Greece, Diana Shipping currently has a fleet of 48 dry bulk vessels with a combined carrying capacity of about 5.7 million dwt.
Diana Shipping launches public offering of common shares
