Scorpio Set to Raise USD 150 Million for Its Newbuilds

Dry bulk transporter Scorpio Bulkers Inc. revealed plans yesterday to raise USD 150 million through private placement of its shares of common stock. An aggregate of 40,000,000 common shares will be sold at a price of USD 3.75 per share, according to Scorpio. Scorpio said it intends to use the net proceeds of this offering to fund installment payments due under its newbuilding program, and the remaining amount,for general corporate purposes and working capital. The shares are due on or about November 20, 2014, with RS Platou Markets, Inc. and RS Platou Markets AS acting as placement agents for the private placement. Scorpio Bulkers Inc. has contracted for 78 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels, from shipyards in Japan, South Korea, China and Romania. Upon final delivery of all of the vessels, the companys owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes. Press Release