George Economou, who serves as chief executive of DryShips and its spinoffs, fielded questions about the proposed Nasdaq listing during his company’s fourth-quarter conference call.
Prior to a question-and-answer session with analysts and investors Economou indicated efforts to overhaul existing debt will be management’s top priority in the months ahead.
The executive acknowledged that this is, in large part, why DryShips plans to offload a portion of its stake in Tankships, which is pursuing a fundraiser that could top $150m.
In the absence of a race to refinance debt before year-end Economou admitted that his company would probably opt to “maintain the tanker fleet” instead.
He said DryShips may be forced to shed more tankers in the months ahead, additional shares of Ocean Rig or “a combination both” under the broader effort to shore up its balance sheet.
When asked if the owner intends to part ways with all of its tankers finance chief Ziad Nakhleh said the decision hinges on the outcome of the debt overhaul.
“If we go that route it will depend on our cash needs,” he said before reminding callers that DryShips is grappling with facilities backed by ABN Amro and Ocean Rig.
If Tankships seals a Nasdaq listing Nakhleh admitted the owner would likely need to reduce its stake even further “to reach the level needed to repay the facilities” without selling more shares of Ocean Rig.
Earlier this week an analyst at Arctic Securities, Erik Nikolai Stavseth, warned clients that DryShips may need “additional funding” prior to year-end.
“DryShips will have to refinance a $200m loan facility in the fourth-quarter of 2015,” he continued in an earnings preview published Monday morning.
Stavseth had little to say about Tankships but argued that its parent will probably need to sell more of its own stock if turbulence in the dry-bulk market continues.
