DryShips Inc. (DRYS) on Nov. 25 announced that it has closed its previously announced $400 million notes offering. The offering, which was increased to $400 million from $300 million as planned originally, has generated proceeds of $448 million.
The underwriter has purchased the full over-allotted notes and purchased an additional $60 million notes on similar terms. The notes will not be listed on any securities exchange nor included in any automatic quotation system.
The company had announced on Nov. 19 to issue $400 million of notes due Dec 2014, with interest payable June 1 and Dec. 1 of each year, beginning from June 2010. The notes will be denominated as senior unsecured obligations and will be at par in right of payment to all other senior unsecured debt.
The net proceeds from the offering will be used for vessel acquisitions, acquisitions of vessel owning companies, and other acquisitions in shipping and related industries, besides general corporate purposes such as scheduled capital expenditures for newbuild drillships.
DryShips Inc. engages in the ownership and functioning of drybulk carriers that operate worldwide. As of Aug. 10, 2009, it owned a fleet of 41 drybulk carriers comprising 7 Capesize, 29 Panamax, 2 Supramax and 3 newbuilding drybulk vessels with a combined deadweight tonnage of approximately 3.6 million tons, as well as 2 ultra deep water semisubmersible drilling rigs and 4 ultra deep water newbuilding drillships.
The company announced the cancellation of an agreement to acquire two Panamax vessels, which was expected to be delivered in first quarter 2010. However, Dry Ships did not incur any cancellation fees. In addition, the company has recently cancelled the acquisition of a total of 13 Capesize vessels.
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