Baltic Trading announces IPO price range.
Baltic Trading has announced a price range for its initial public offering in New York, which is consistent with its amended prospectus designed to raise $299.9m in gross proceeds.
Peter Georgiopoulos" dry bulk debutant, which has made the intended purchase of six bulkers worth $284m dependant on the success of its IPO, has unveiled a price band of $14-$16 per share for the proposed sale of 16.3m shares.
Assuming top pricing at $16 per share and the exercise of the over-allotment option of 2.445m shares, Baltic would have raised gross proceeds of $299.9m.
A revised prospectus filed by Baltic Trading notes that assuming an issue price of $15 per share, no over-allotment, and after deducting underwriting discounts and commissions, it would be left with net proceeds of $225.7m.
Genco Shipping & Trading would inject a separate $75m in equity into Baltic, for Class B shares. Genco would also serve as Baltic"s manager.
Baltic last week unveiled the intended purchase of two capesize newbuildings from Shipping Trust and Oceanways Trust for a total of $144.2m, and four 2009-built supramaxes from Inta Navigation, Borak Shipping, Sinova Shipping, and Spice Shipping for a total of $140m.
The $225.7m plus Genco"s $75m would leave Baltic enough cash to pay the purchase price of the ships. The revised prospectus states that the surplus would go towards working capital and further ship purchases.
The prospectus adds: ?To the extent we cannot complete the purchase of the vessels intended to comprise our initial fleet, we may use the proceeds of this offering to purchase other vessels or for general corporate purposes.?
Baltic aspires to be a high-dividend, low-debt, spot market specialist, as against Genco"s strategy of full contract coverage.