Scorpio Bulkers Announces $150 Million Private Placement

bulk carrier
Photo (c) Shutterstock/Volodymyr Kyrylyuk

Scorpio Bulkers Inc. (NYSE: SALT) announced Monday plans to raise $150 million through a private placement of its common stock to help pay for its 78-ship newbuilding program.

Scorpio Bulkers announced the private placement offering on Monday, saying it has entered into a Securities Purchase Agreement with certain institutional investors for the private placement of an aggregate of 40,000,000 Common Shares sold at a price of $3.75 per share, resulting in gross proceeds of $150 million. The statement added that the net proceeds would be used to fund installment payments due under its newbuilding program, and the remaining amount, if any, for general corporate purposes and working capital.

Scorpio Bulkers says it expects to issue the Common Shares on or about November 20, 2014, with RS Platou Markets, Inc. and RS Platou Markets AS acting as Placement Agents.

As of today, Scorpio Bulker’s newbuilding program includes 78 dry bulk vessels representing 8,561,000 DWT to be delivered in 2015 and 2016. The newbuilds range in sizes, including 29 Ultramax vessels (60,000 to 64,000 DWT), 21 Karsarmax vessels (81,000 to 84,000 DWT) and 28 Capesize vessels (180,000 DWT) from shipyards in Japan, South Korea, China, and Romania. Scorpio’s fleet currently consists of two Kamsarmax vessels, time charters-in 23 dry bulk vessels (one Handymax, one Ultramax, four Supramax, five Panamax, eight Kamsarmax and four Post-Panamax vessels).