By Stephanie N. Rotondo
Phoenix, June 6 - Safe Bulkers Inc. sold $20 million of 8% series B cumulative redeemable preferred stock via a public offering on Thursday and a further $20 million in a private placement, according to a market source and a company announcement.
The deal was announced on Monday.
The private placement is for preferreds identical to those in the public sale and is being made with Chalkoessa Maritime Inc., an entity associated with the company's chief executive officer, Polys Hajioannou.
Pricing for both public and private tranches is identical.
Incapital LLC is the sole structuring agent and is also a bookrunner along with DNB Markets.
Dividends will be payable on the 30th day of January, April, July and October, beginning July 30.
The preferreds become redeemable on or after July 30, 2016.
If the company experiences a covenant, cross or dividend payment default, or if the preferreds are not redeemed in whole by July 30, 2018, the dividend rate shall increase 1.25 times.
The Athens, Greece-based provider of marine drybulk transportation intends to list the shares on the New York Stock Exchange.
Proceeds will be used for vessel acquisitions, capital expenditures and other general corporate purposes, including the repayment of debt.
| Issuer: | Safe Bulkers Inc.
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $40 million, $20 million, or 800,000 shares, in public sale, $20 million, or 800,000 shares, in private sale
|
| Greenshoe: | $3 million, or 120,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Incapital LLC, DNB Markets
|
| Co-manager: | Evercore Group LLC
|
| Dividend: | 8%
|
| Price: | Par of $25.00
|
| Yield: | 8%
|
| Talk: | Around 8%
|
| Call options: | On or after July 30, 2016 at par plus accrued dividends
|
| Step-up clause: | In the event of certain defaults, or if the shares are not redeemed in full by July 30, 2018, the dividend increases 1.25 times
|
| Pricing date: | June 6
|
| Settlement date: | June 13
|
| Investor: | Chalkoessa Maritime Inc. (for $20 million private sale)
|
| Cusip: | Y7388L111
|
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