These include TORM, which has priced its private placement of 11,920,000 new Class A common shares at $8.39 (corresponding to DKK51) per new share.
This will give gross proceeds of $100 mill, as determined through an accelerated bookbuilding process. The new shares will be issued without any pre-emption rights for TORM's existing shareholders and have been placed with Danish and foreign institutional investors pursuant to exemptions from the registration requirements under the US Securities Act of 1933, as amended.
TORM said that the net proceeds from the placement are expected to be used for funding of existing newbuilding commitments, and/or funding of potential fleet growth opportunities through either execution of existing newbuilding options of up to four fuel-efficient and high-specification product tanker newbuildings from Guangzhou Shipyard International (GSI), or acquisition of attractively priced secondhand vessels on the water and/or general corporate purposes.
OCM Njord Holdings, a wholly-owned subsidiary of funds managed by Oaktree Capital Management, the company's majority shareholder, has shown its support by subscribing for 8,214,548 new shares for an aggregate amount of $68.9 mill.
The expected settlement date is 26th January, 2018 and the new shares are expected be listed on Nasdaq Copenhagen on 30th January, 2018.
They are also expected to be approved for listing on NASDAQ New York at or prior to the time of closing of the placement.
Elsewhere, Teekay Corp has commenced an offering to sell, subject to market and other conditions, $100 mill principal amount of convertible senior notes, due 2023, or up to $115 mill if the initial purchasers exercise in full their option to purchase additional notes in full. in a private offering to qualified institutional buyers.
The convertible notes will be the general senior unsecured obligations of Teekay and will accrue interest payable semi-annually in arrears. They will be convertible into Teekay’s common stock.
Teekay also announced that it had started a registered public offering pursuant to an effective shelf registration statement of 10 mill shares of its common stock. The company intends to grant the underwriters a 30-day option to purchase up to an additional 1.5 mill shares of common stock.
The company said that it expected to use the net proceeds from the offerings for general corporate purposes, which may include, among other things, repaying a portion of its outstanding debt and funding working capital.
Finally, Chembulk Tankers’ wholly owned subsidiary, Chembulk Holding, has priced $200 mill in senior secured bonds.
They will carry a coupon of 8% and will be due in February, 2023.
The net proceeds from the bond offering will be used for refinancing of existing bank debt and general corporate purposes. In addition, this bond offering contains a tap issuance feature, by which Chembulk can expand the issue amount at a future date to a maximum of $250 mill, subject to standard issuance tests, the company said.
Chembulk CEO, Dave Ellis, commented, “This successful offering is a notable milestone as we constantly work to maintain Chembulk’s reputation for safe and efficient product deliveries to our customers and will facilitate the renewal and growth of our fleet.”
DNB Markets acted as bookrunner and KKR Capital Markets acted as financial advisor.
An application will be made for the bonds to be listed on Oslo Børs.