Scorpio Bulkers Eyes Fleet Expansion as It Sells Shares

Scorpio Bulkers Monaco-based dry bulk shipping company Scorpio Bulkers is planning to offer, issue and sell 10 million shares of its common stock, par value USD 0.01 per share. The net proceeds of the sale, to be undertaken through an underwritten public offering, are expected to be used for general corporate purposes, which may include the expansion of the companys fleet, Scorpio Bulkers said. Furthermore, the underwriters would be granted a 30-day option to purchase up to an additional 1.5 million common shares. Although the company did not inform of the financial aim of the offering, based on Scorpio Bulkers closing price of USD 8.35 per share on October 24, the sale, including the underwriters option, could raise gross proceeds of up to USD 100 million. Morgan Stanley is acting as sole book-running manager in the Offering, Clarksons Platou Securities is acting as lead manager, and Seaport Global Securities is acting as co-manager. On the back of an improvement in dry bulk rates, Scorpio Bulkers managed to cut its net loss for the period ended September 30. For the third quarter of 2017 the companys GAAP net loss was USD 10.7 million, compared to a GAAP net loss of USD 21.3 million reported in the same period a year earlier. For the nine months ended September 30, 2017, the companys GAAP net loss stood at USD 58.7 million, against a GAAP net loss of USD 104.3 million for the prior year period. The company’s Board of Directors has also declared a quarterly cash dividend of USD 0.02 per share.