Safe Bulkers plans private placement of about 12 million new shares

Nicosia, Cyprus. Safe Bulkers plans to raise fresh capital through a private placement of approximately 12 million new common shares to support its newbuilding programme and potential vessel acquisitions. The dry-bulk shipping company announced the proposed placement on Wednesday, just over three months after its shares began trading on Euronext Athens alongside their New York Stock Exchange listing.

Placement terms

Chief executive and largest shareholder Polys Hajioannou has committed to subscribe for 2 million shares at the eventual offer price. His allocation may be reduced to allow shares to be placed with other investors.

The final number of shares and the offer price, which will be set in euros, will be determined by the board in cooperation with the placement managers following an accelerated bookbuilding process.

Use of proceeds

Safe Bulkers said the proceeds would strengthen its liquidity and help finance its existing newbuilding programme. Part of the funds could also be used for additional new vessel orders, second-hand vessel acquisitions and general corporate purposes.

Fleet renewal programme

The fundraising comes as the company continues its fleet renewal programme. As of July 24, Safe Bulkers had an orderbook of 10 newbuildings, comprising nine Kamsarmax vessels and one Capesize vessel.

Two of the Kamsarmax vessels are dual-fuel methanol ships, while deliveries across the orderbook extend through 2029.

The company had paid $91.5 million towards nine newbuildings, excluding the Capesize vessel, and had $277.2 million in remaining capital expenditure requirements. The Capesize newbuilding is being financed separately through a finance lease.

As of July 24, Safe Bulkers had a fleet of 46 vessels, including two held for sale, as well as $153.2 million in cash, deposits and restricted cash and $204.5 million in undrawn borrowing capacity.