Eagle Bulk Shipping talks $100 million five-year convertibles to yield 4.25%-4.75%, up 25%-30%

By Abigail W. Adams

Portland, Me., July 24 – Eagle Bulk Shipping Inc. plans to price $100 million of five-year convertible notes after the market close on Wednesday with price talk for a coupon of 4.25% to 4.75% and an initial conversion premium of 25% to 30%, according to a market source.

Jefferies & Co., Clarksons Platou Securities, and Fearnley Securities AS are bookrunners for the Rule 144A and Regulation S offering, which carries a greenshoe of $15 million.

The stock reference price will be determined on July 26 after a two-day averaging period. The conversion price will be no less than 10% above the closing stock price on July 24.

The notes are non-callable. There is standard takeover and dividend protection.

Concurrently with the convertible notes offering, up to 8 million shares of the company’s common stock will be offered by selling shareholders through a lending arrangement with one of the initial purchasers of the notes, according to a company news release.

Proceeds will be used to fund a portion of the purchase price of six new shipping vessels in addition to general corporate purposes and working capital.

Eagle Bulk Shipping is a Stamford, Conn.-based shipowner-operator providing global transportation services for commodities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.