John Fredriksen-backed SFL Corp has priced its previously announced underwritten public offering.
The New York-listed shipowner sold 8m common shares at $12.50 per share, totalling $100m.
Shares traded around $13 in the after-market, having closed at $13.95.
Net proceeds are expected to be used for general corporate purposes, including vessel acquisitions.
“We continuously evaluate potential transactions that we believe will be accretive to earnings, enhance shareholder value or are in the best interests of the company, which may include the pursuit of other business combinations, the acquisition of vessels or related businesses, the expansion of our operations, repayment of existing debt, share repurchases, short term investments, other equity or debt offerings or other transactions,” SFL told the US Securities & Exchange Commission on Tuesday.
SFL has granted the underwriters a 30-day option to buy up to an additional 1.2m shares, which could bring in a further $15m.
The company owns and operates around 350 vessels in multiple segments.
Chief executive Ole Hjertaker told TradeWinds this month: “If we can pick the right transactions and have better access to capital, we can create added value for our shareholders.
“Our focus is to maximise dividends to our shareholders over time. That is our driving force.
“We can grow more. We can easily double our portfolio. Because we have good access to capital and deal flow.”
Morgan Stanley is acting as sole bookrunning manager for the offering.
BTIG is acting as lead manager, while Arctic Securities, DNB Markets, Fearnley Securities and Pareto Securities are co-managers.
