Capital Maritime seeks $270m for its new tanker venture.
Capital Maritime is looking to raise about $270m from outside investors in a public offering on the New York Stock Exchange for its newly formed tanker venture, Crude Carriers Corp.
The Evangelos Marinakis-led group, which manages one publicly traded tanker company, Nasdaq-listed Capital Product Partners, will plough $40m into the new company"s start-up capital.
A filing with the Securities and Exchange Commission says that the company expects to spend virtually all the proceeds on its initial three-vessel fleet and follow-on offerings are possible to fund ongoing growth.
Crude Carriers plans to acquire the 2006 built Capital Maritime controlled suezmax Miltiadis M II for $71.25m.
It will also purchase two very large crude carriers under construction at Japan"s Universal Shipbuilding that the group purchased privately from Cido Shipping in January this year.
The IPO company will pay Capital $96.5m for each of the VLCCs, named Alexander the Great and Achilleas, which are due for delivery in March and June of this year.
In the filing, the company said it has been cleared to apply to list its common stock on the NYSE under the trading symbol ?CRU?.
For its initial investment, Capital Maritime through affiliate vehicle Crude Carriers Investments Corp. would hold a 49% stake in the new tanker outfit.
Crude Carriers said it did not expect significant overlap with the private group, which would own only one oil tanker after completion of the offering.
However, the two sides have entered into an agreement regarding future chartering and acquisition opportunities, which requires Capital to give the new company limited first refusals in a range of circumstances.
The company said it expected to concentrate initially on the spot market but to retain a flexible chartering policy.
The planned offering will be led by UBS Investment Bank, BofA Merrill Lynch and Wells Fargo Securities with Nordea Markets, Oppenheimer & Co, Cantor Fitzgerald, Pareto Securities, R S Platou Markets and ING among the supporters.
Crude Carriers said it expected the 13.5m shares in the offering to price at $20 each as the midpoint in the expected price range.