Star Bulk Carriers Corp. announced the successful conclusion of the company's US$75 million equity rights offering and private placement. The net proceeds of this fund raising transaction, however, increased to more than US$80 million. Back stop providers were supplied the minimum equity volumes under their purchase commitments due to the high level of participation by current shareholders.
The rights offering was backstopped by mostly current investors. These investors include investment and equity funds managed by Monarch Alternative Capital LP, Oaktree Capital Management L.P., Far View Partners L.P., BlueShore Global Equity Fund L.P., BlueShore Global Equity Fund L.P., and individuals in Star Bulk's board of directors and some executive officers.
Star Bulk Carriers Corp had planned to use the capital gains from the offering to improve liquidity. The company also said the capital would partially finance a project that consists of contracts for the development of fuel-efficient Ultramax and Capesize carriers.
"This is a milestone for Star Bulk that has allowed us to enter into newbuilding orders to expand our fleet with modern fuel efficient ships at very attractive prices. The offering validates the confidence from our existing shareholders and new investors in the Company and our strategy. We are pleased to welcome Oaktree Capital Management and Monarch Alternative Capital to our group of new shareholders. We believe that our strategy will enable us to create value for our shareholders," Star Bulk President and CEO, Spyros Capralos, said.
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