Newcastlemax bulker owner Himalaya Shipping is hoping to not only expand its public listing from Oslo to New York but also walk away with some extra cash as a result.
The Herman Billung-led company is targeting $45m in proceeds from selling new shares on the New York Stock Exchange, according to an updated prospectus filed with the US Security and Exchange Commissionon Monday.
TradeWinds has previously reported Himalaya’s plans for an initial public offering (IPO) in New York, but the owner of 12 bulkers had not indicated whether it would seek fresh cash as a part of the exercise.
Companies migrating from an Oslo listing to a joint registration in New York often do so without seeking to raise funds initially.
Himalaya expects to rake in $40.8m in net proceeds after deducting expenses, or $47.3m if deal underwriters exercise their option to purchase an additional $6.75m in shares. That will depend on the stock trading up from the initial price at listing.
The shipowner has two dual-fuel bulkers on the water that can burn both LNG and conventional marine fuels, and it has a further 10 scheduled for delivery into 2024.
Himalaya said it will use deal proceeds for general corporate purposes, but outlined some more specific plans as well.
The company will repay $7.5m drawn under a bridge loan facility from DNB Bank, which is also the lead underwriter of the IPO.
It also plans to repay $2.5m to in short-term funding to its ship manager, $480,000 toward installation of scrubbers on two vessels and a further $19.2m toward scrubbers on eight additional vessels unless it secures debt financing for the same purpose.
It will also pay $8.1m in loan fees to leasing providers and $1.35m in fees related to the delivery of its first two vessels from China's New Times Shipbuilding.
The shipowner boasts a fleet of 12 newcastlemax bulkers, all being built at China’s New Times Shipbuilding, which are expected to hit the water by August 2024.
The first of the scrubber-fitted vessels — the 210,000-dwt Mount Norefjell — was delivered this month.
Two more vessels are expected to be delivered over the next 45 days, and a further three by the end of the year. The remaining six vessels are expected to be delivered by the end of the third quarter of 2024.
The ships cost $70m on average and are lease-financed with bareboat charters back to Himalaya, which is spending $2.4m on each scrubber-fitting.
