Safe Bulkers to sell series B cumulative redeemable preferreds in public, private offerings

By Stephanie N. Rotondo

Phoenix, June 3 - Safe Bulkers Inc. is planning a public offering of series B cumulative redeemable preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Monday.

The public offering is being done concurrently with a private placement of the same series of shares to Chalkoessa Maritime Inc., an entity associated with the company's chief executive officer.

Incapital LLC is the structuring agent and is also a bookrunner along with DNB Markets. Evercore Partners is the co-manager.

Dividends will be payable on the 30th day of January, April, July and October, beginning July 30. The preferreds become redeemable on or after July 30, 2016.

If the company experiences a covenant, cross or dividend payment default, or if the preferreds are not redeemed in whole by July 30, 2018, the dividend rate shall increase 1.25 times.

The Athens, Greece-based provider of marine drybulk transportation intends to list the preferreds on the New York Stock Exchange.

Proceeds will be used for vessel acquisitions, capital expenditures and other general corporate purposes, including the repayment of debt.

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