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U.S.-based Eagle Bulk Shipping (NASDAQ: EGLE) has announced a underwritten secondary public offering of $1.5 million shares of its common stock.
The shares are being offered by GoldenTree Asset Management, which as of now owns 3,040,707 shares of EGLE representing approximately 22.6% of Eagle Bulk’s total outstanding shares, so about half its holdings.
GoldenTree will receive all of the net proceeds. Eagle Bulk is not selling any shares in the offering and will not receive any proceeds from the sale.
With its headquarters in Stamford, Connecticut, Eagle Bulk Shipping operates in the mid-size drybulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world with 53 ships representing 3.2 million deadweight tons and an average age 8.7 years. The company said it also expects to grant the underwriter a 30-day option to purchase up to 225,000 additional shares.
EGLE has been one of the hottest stocks in the US-listed dry bulk sector since last fall, rising to more $50 per share from October’s low below $14. EGLE’s share price closed at $51.20 on Tuesday before falling nearly 6% in after-hours trading following the announcement.
GoldenTree is an employee-owned, global asset management firm with nearly $43 billion assets under management as of May 1, 2021. Morgan Stanley is acting as the sole book runner for the offering.
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