In Cyprus, Safe Bulkers plans to place 12 million shares to fund its fleet
In Cyprus, shipping company Safe Bulkers announced its intention to raise new capital through a private placement of approximately 12 million new common shares. The funds are planned to be directed toward a vessel construction programme and potential further acquisitions, Cyprus Mail reports.
The company’s chief executive officer and largest shareholder, Polys Hajioannou, has committed to purchase 2 million shares at the final offering price. At the same time, the number of shares he purchases may be reduced in order to place shares with other investors.
Placement terms
The final number of shares and the price will be determined by Safe Bulkers’ board of directors together with the placement managers following an accelerated bookbuilding process. The offering price will be set in euros.
The company said the proceeds are expected to strengthen its liquidity and help finance its current vessel construction programme. Part of the proceeds may also be used for new vessel orders, acquisitions of second-hand vessels and general corporate purposes.
Piraeus Bank, DNB Carnegie and Fearnley Securities are acting as managers of the private placement. The shares will be offered only to institutional investors outside the United States in accordance with Regulation S of the US Securities Act. In the European Economic Area, participation is limited to qualified investors, while similar restrictions will apply in the United Kingdom.
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Fleet renewal
As of July 24, Safe Bulkers’ orderbook comprised 10 newbuildings: nine Kamsarmax-class vessels and one Capesize-class vessel. Two Kamsarmax vessels will be dual-fuel and capable of operating on methanol. Deliveries under these orders will continue until 2029.
The company had already paid $91.5 million for the nine newbuildings, excluding the Capesize vessel. The remaining capital expenditure requirements stood at $277.2 million. Construction of the Capesize vessel is financed separately through a financial lease.
As of July 24, the group’s fleet consisted of 46 vessels, two of which were listed for sale. The company had $153.2 million in cash, deposits and restricted cash, as well as $204.5 million in unused borrowing capacity.
Trading in Safe Bulkers shares on Euronext Athens was temporarily suspended early on Wednesday at the company’s request. The results of the bookbuilding process, including the final price and number of shares issued, were expected to be announced no later than 14:00 Greek and Cypriot time on the same day.
