Aries Maritime gets commitment for $145 million 7% convertibles issue

By Jennifer Chiou

New York, July 15 - Aries Maritime Transport Ltd. said it received a commitment letter from the Investment Bank of Greece to fully underwrite its private issue of $145 million of 7% senior unsecured convertibles notes due 2014.

The bank is a member of the Marfin Popular Bank Group.

The receipt of the commitment letter was a condition to Aries Martime's plan to acquire three Capesize drybulk carriers worth an estimated $36 million from Grandunion, Inc., a company controlled by Michael Zolotas and Nicholas Fistes, in exchange for 15,977,778 newly issued shares.

The conversion price will be $0.75 per share of common stock.

Proceeds will be used primarily to fund vessel acquisitions and partially to repay existing debt.

As already reported, Fistes will become chairman of Aries Maritime's seven-member board of directors, Zolotas will become president and a director, and Grandunion will designate the chief financial officer of the company and two additional directors.

The plan is also conditioned on the company obtaining some amendments to its senior credit facility.

The company announced plans for the offering on June 24.

Aries is a Glyfada, Athens-based shipping company.

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