DryShips Inc. (NASDAQ: DRYS) is back at the trough for more capital. The Greek shipping and marine transport company announced after the close that it has commenced a public offering of $150 million in convertible senior notes. The company said that these notes are being offered as “additional notes under an indenture, as supplemented by a supplemental indenture, pursuant to which the Company issued $460,000,000 aggregate principal amount of convertible senior notes on November 25, 2009.” The new notes currently offered and those notes previously issued will be treated as a single series of debt securities under the indenture. This sounds like a sneaky way of getting around calling this a new offering.
DryShips plans to use the proceeds from the offering for vessel acquisitions, working capital and other general corporate purposes. Deutsche Bank Securities is the sole book-running manager for the offerings, and it has a $22.5 million overallotment option.
The marine transport and services company will enter into a share lending agreement with Deutsche Bank where it will loan to Deutsche Bank AG shares of its common stock having a market value of about $60 million. The Company also intends to enter into an equity underwriting agreement. These are deemed the hedges by investors. 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.
Shares closed up 4.7% at $6.49 today, but the stock is now down 4.5% at $6.20 in the after-hours session on the news. The 52-week range is $4.90 to $11.48, a mere fraction of its former highs.
JON OGG
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.