Key Developments For DryShips Inc.
DryShips Inc. (DRYS.O) (Nasdaq)
DryShips Inc. Announces Exercise Of Over Allotment Option By Underwriter And Closes Offering of $460 Million
DryShips Inc. announced that in connection with its previously announced offering of $400 million aggregate principal amount of convertible senior notes due 2014, the underwriter has exercised in full its over allotment option granted by the Company and has purchased an additional $60 million aggregate principal amount of convertible notes on the same terms on which the $400 million convertible were sold to the underwriter. The Company also announced that the closing of the convertible notes offering and the over allotment option took place simultaneously. Accordingly, $460 million in aggregate principal amount of convertible notes have been sold by the Company to the underwriter, resulting in aggregate net proceeds to the Company of approximately $448 million. Deutsche Bank Securities Inc. acted as the sole book-running manager for the offering.
DryShips Inc. Announces Pricing Of $400 Million Convertible Senior Notes Offering
DryShips Inc. announced the pricing of its previously announced public offering of convertible senior notes. The offering size was increased from $300 million to $400 million. The sale of the convertible notes is expected to close on November 25, 2009, subject to customary closing conditions. The convertible notes, which are being issued at a price equal to 100% of their face value, will have an interest rate of 5%. The convertible notes will be senior unsecured obligations of the Company. The initial conversion price for the convertible notes will be $7.19 per share. The underwriter for the offering will also have the option to purchase up to $60 million principal amount of additional convertible notes solely to cover any over-allotments. The Company estimates that the net proceeds from the offering will be approximately $387 million after deducting underwriter discounts and commissions and estimated offering expenses payable by the Company assuming the over-allotment option is not exercised. The Company intends to use the proceeds from the offering for vessel acquisitions and other general corporate purposes.
DryShips Inc. Announces Acquisition Of Two Panamax Vessels
DryShips Inc. announced that it has signed an agreement to acquire two Panamax vessels for an aggregate price of $75.76 million. The vessels, a 76,635 dwt Panamax built in 2007, and a 76,635 dwt Panamax built in 2006, are expected to be delivered charter-free within the first quarter of 2010.
DryShips Inc. Announces $300 Million Convertible Senior Notes Offering
DryShips Inc. announced that it has commenced a public offering of $300 million aggregate principal amount of convertible senior notes. The underwriter for the offering will also have the option to purchase up to $45 million principal amount of additional notes solely to cover any over-allotments. The Company intends to use the proceeds from the offering for vessel acquisitions, working capital and other general corporate purposes. Concurrently with the offering of the convertible notes, the Company intends to enter into a share lending agreement with Deutsche Bank AG, London Branch (Deutsche Bank AG), under which it will loan to Deutsche Bank AG shares of its common stock having a market value of approximately $150 million. The Company also intends to enter into an equity underwriting agreement with Deutsche Bank Securities Inc. pursuant to which Deutsche Bank AG or its affiliates intend to sell shares of the Company's common stock that they will be entitled to borrow from the Company under the share lending agreement. The Company will not receive any of the proceeds from this sale of common stock but will receive a nominal lending fee from Deutsche Bank AG under the share lending agreement. Deutsche Bank Securities Inc. is acting as Sole Book-running Manager for the offerings.
DryShips Inc. Issues FY 2009, FY 2010 and FY 2011 Fixed EBITDA Guidance-Conference Call
DryShips Inc. announced that fixed EBITDA is expected to be approximately $600 million, $671 million and $607 million for fiscal 2009, 2010 and 2011 respectively.
