Ocean Rig UDW Inc. (NASDAQ: ORIG) is in the market to raise more capital and it’s looking to do so through a secondary offering. Wednesday morning, the company announced that it has priced a secondary offering of about 28.6 million shares of its common stock. The offering is expected to close on June 8.

The price per share for this offering came out to $7.00, valuing the entire offering at around $200 million. Comparatively this is a 13.5% discount from Tuesday’s closing price of $8.09 and a 5.5% discount from the 50-day moving average of $7.41.

The underwriters for the offering were Clarksons Platou Securities, Pareto Securities, and Seaport Global Securities.

As part of the offering, George Economou, Chairman, President and CEO of Ocean Rig, is purchasing $10 million, or roughly 1.43 million shares, of common stock in the offering at the public offering price, a number of common shares that maintains his direct ownership in Ocean Rig, representing about 5% of Ocean Rig’s common stock.

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Ocean Rig intends to use the proceeds from this offering for working capital and general corporate purposes, including the acquisition of drilling rigs.

For some background on Ocean Rig, the company is an offshore drilling contractor that provides oilfield services for offshore oil and gas exploration, development, and production drilling. It specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry.

It’s important to note that this stock was near the $9 mark just less than a month ago.

On Wednesday afternoon, shares of Ocean Rig were down 12.4% at $7.09 on a 52-week trading range of $5.91 to $19.97.

FOR THE FULL FILING CLICK HERE.

 

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