Tsakos Energy Navigation said it raised $100m through the issuance of newly minted preferred shares.
The New York Stock Exchange-listed tanker owner said it will issue 4 million Series E preferred shares at a price of $25 per share. The shares pay an annual dividend equal to 9.25% year through 2027. If the shares are not redeemed by then, the shares will pay a floating rate.
The Athens-based company granted underwriters a 30-day option to purchase 600,000 additional shares, which would result in full gross proceeds of $115m.
Tsakos said the net proceeds will be used for general corporate purposes, which may include vessel acquisitions or other investments. It will file to list the shares on the New York Stock Exchange.
Morgan Stanley, UBS Investment Bank, JP Morgan, Citigroup and Stifel are acting as joint bookrunners for the offering. DVB Capital Markets and BNP Paribas are acting as co-managers for the offering.
The Series E shares will be the fourth series of preferred shares issued by the Nikolas Tsakos-led company. The company paid out some $12.7m in preferred share dividends in 2015, along with $15.5m in common share dividends.
