UPDATE 1-Baltic Trading files for $110 mln offering; shrs slide

Tue Aug 10, 2010 10:49am EDT

* To offer up to $110 mln shares

* Says part of proceeds to be used to repay debt

* Shares down 6 percent

Aug 10 (Reuters) - Drybulk carrier Baltic Trading Ltd (BALT.N), a unit of Genco Shipping & Trading (GNK.N), said it has filed for a follow-on public offering of its shares worth up to $110 million, sending its shares down 6 percent.

Baltic Trading, which was formed last October, currently has about 22.5 million shares outstanding and a market capitalization of $264.1 million, according to Reuters data.

On Monday, the company posted a second-quarter profit that matched Wall Street estimates. [ID:nASA00MVV]

Baltic Trading intends to use part of the net proceeds to repay debt. In June, Baltic Trading had agreed to buy three vessels from privately held Metrostar Management for $99.8 million. [ID:nSGE6580IR]

Baltic Trading said it will consider commencement of any marketing for this offering only after Sept. 5, once the lockup period connected with its initial public offering expires.

Shares of the company were down 5.6 percent at $11.09 Tuesday on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Don Sebastian)

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