Belships has raised NOK 140m ($17m) from an overnight private placement to help fund its recent acquisition of two ultramaxes under construction in China.
The Oslo-listed shipowner issued 20m shares at NOK 7 per share in a transaction that saw Arctic Securities and Pareto Securities act as joint lead managers and bookrunners.
The supramax and ultramax specialist said the book was composed of “high quality private and institutional investors”.
“Through the completion of the private placement, the company has successfully expanded its shareholder base and increased the tradeable free float of the Belships share,” the company said in a statement.
Belships chief executive Lars Christian Skarsgard said he was “pleased to have concluded another important transaction with the aim of further expansion”.
“We see lots of potential for our company and we will continue to execute on our growth strategy which we believe will lead to increased profitability," he added.
Belships said the private placement entailed a deviation from the existing shareholders' pre-emptive rights to subscribe for and be allocated new shares and the equal treatment obligations under the Norwegian Securities Trading Act.
However, the board said it “carefully considered” such deviation and had resolved that the private placement was “in the best interests of the company and its shareholders”.
Carefully considered
“In reaching this conclusion the board of directors has, inter alia, considered the implications of an underwritten rights issue, alternative financing sources, the dilutive effect of the share issue, the prevailing market conditions, the investor interest in the transaction and development of the company enabled by securing the new equity.”
In addition, the board said the equity was raised with “significantly lower completion risks” compared to a rights issue.
Several of the companies senior executives and board members participated in the private placement as well as existing shareholders.
Norwegian shipping magnate Frode Teigen was allocated 5m shares, while major shareholder Sverre Tidemand was allocated 285,714 offer shares through his company Sonata.
Belships board member Carl Erik Steen was allocated 100,000 shares, while Skarsgard was offered 50,000. Chairman Peter Frolich was allocated 5,000 shares in the offering.
Belships recently agreed to acquire two Japanese-built ultramax bulkers under construction in China for an undisclosed amount.
The 61,000-dwt vessels, which are due to be delivered between August and September, will be financed through 10-year bareboat charters with purchase options, but no obligation to buy the two bulkers.
Belships said at the time that the estimated cash break-even for the vessels upon delivery is about $10,700 per day, including operational expenses.
