Ardmore Shipping filed papers on Friday that set the stage for up to $50m in share sales through at-the-market (ATM) offerings.
The New York-listed product tanker owner said it struck an agreement with investment banks Evercore, DNB Markets and Stifel paving the way to sell shares from “time to time”.
The deal was disclosed as part of $500m shelf registration filed with the US Securities & Exchange Commission, a document that paves the way for future sales of shares or debt securities.
If Ardmore sells shares under the ATM, the new cash will go towards general corporate purposes, according to a prospectus supplement.
The Cork, Ireland-based shipowner said the new ATM supplements its existing programme. It announced an ATM programme worth up to $50m in sales in August last year.
Ardmore’s shares reacted quickly to the potential for new share sales, losing 4.3% in after-hours trading. Friday had been a strong trading session for the stock, which gained 6.2% to close the day at $9.93.
The company’s financing activities this year have focused on reducing the share of its fleet locked into lease financing, and replacing that with sustainability-linked loans.
When it reported second-quarter earnings, the owner revealed $308m worth of refinancing that cut its financial leases from 14 ships to just two.
It closed the second quarter with $45.4m in cash and equivalents, as well as more than $331m in total debt.
