As part of the offering, entities affiliated with Simeon Palios, the Company’s Chief Executive Officer and Chairman, executive officers and certain directors, have agreed to purchase approximately US$20.0 million of common shares at the public offering price.
Substantially all of the net proceeds of the offering are expected to be used to fund the acquisition costs of additional dry bulk vessels, including two 2013-built post-panamax dry bulk vessels that the company has agreed to purchase from unaffiliated third parties and one 2013-built kamsarmax dry bulk vessel that the company has agreed to purchase from an unaffiliated third party. The acquisition of the three vessels is subject to approval by the Board of Directors of the company. Any net proceeds from the offering not used for vessel acquisitions will be used for general corporate purposes.
Wells Fargo Securities, LLC and Clarksons Platou Securities, Inc. are acting as joint book-running managers in the offering and BNP Paribas Securities Corp. is acting as co-lead manager.
