World News
Scorpio Bulkers Announces Offering to Raise Almost $200M
Troubled dry bulk operator Scorpio Bulkers Inc. is planning on selling 133 million shares priced at $1.50 each in a bid to raise $199.5 million, the company announced last week.
In addition, the company said that Scorpio Services Holdings Limited and certain senior executive officers would purchase a total of 10 million shares at the same price.
Scorpio Bulkers says the bulk of the funds are expected to be put towards instalment payments for its newbuild program, with any outlying amount to go towards "general corporate purposes and working capital."
The company has previously been reported as struggling with the downturn in the dry bulk market, with the company's shares having fallen by 70 percent since last fall.
Deutsche Bank Securities Inc. and Clarksons Platou Securities A/S will act as joint bookrunners on the deal.
The offering is expected to close on June 16, 2015.
Earlier this month, the company said it had to "face the music" as it announced that it was selling another five newbuilds for $236 million.
On Friday Ship & Bunker reported that bulker scrapping in the first quarter of 2015 hit a record high of 8.89 million dwt.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 501.00 | 6.00 | 598.50 | 7.00 |
| Rotterdam | 442.00 | 4.00 | 590.50 | 1.00 |
| Houston | 445.00 | 7.50 | 591.00 | 4.50 |
| Fujairah | 493.00 | 9.00 | 708.50 | 10.50 |
| Global 20 Ports Average | 518.50 | 3.50 | 695.50 | 3.00 |
| Global 4 Ports Average | 470.00 | 4.50 | 622.00 | 5.00 |
| Global Average Bunker Price | 561.50 | 3.00 | 745.50 | 1.50 |
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