Eneti Initiates $200 Million Stock Offering to Pay for Offshore Wind Newbuilds

Bulk carrier turned offshore wind installation shipowner Eneti Inc. (NYSE: NETI) on Monday announced its intention to offer $200 million worth of common stock to help fund the company’s pipeline of newbuild wind turbine installation vessels (WTIVs).

Proceeds from the underwritten public offering are expected to be used for general corporate purposes, including the funding of the company’s WTIV newbuild program consisting of one contracted newbuild, one option, and a proposed Jones Act compliant newbuild vessel.

As part of the offering, Scorpio Holdings Limited, a related party and major shareholder, has expressed an interest in the shares at the public offering price with a value of at least $30 million.

Led by Chairman and CEO Emanuele Lauro, in 2020 Eneti shifted from owning and operating dry bulk carriers under the brand name “Scorpio Bulkers” to embark on a new and more “sustainable” future in the offshore wind sector. Since then, it has changed its name and sold off its fleet of dry bulk ships while pursuing new and used highly-capable “next generation” WTIVs needed to develop offshore wind projects in the United States and globally.

Earlier this year, the company entered into an agreement to construct its first WTIV with South Korean shipbuilder DSME at a price tag of $330 million, including one option for an additional vessel. Delivery is planned in early Q3 2024. At the same time, it revealed it was in advanced discussions with American shipbuilders for the construction of a Jones Act compliant WTIV.

Later, in August, Eneti acquired UK-based Seajacks and its fleet of five purpose-built WTIVs, positioning the company as one the top owners and operators of wind turbine installation vessels worldwide. The acquisition resulted in existing Eneti shareholders owning 58% the company and owners of Seajacks owning 42%.

The shares are being offering through an underwritten public offering. Citigroup, DNB Markets, BTIG and Nomura are acting as Joint Book-Runners. Clarksons Platou Securities, Fearnley Securities and Kepler Cheuvreux are acting as Co-Managers.

Shares of Eneti (NYSE: NETI) fell 15% to $11.94 on Monday.

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