TOP Tankers $300 million convertible delayed, new pricing date likely to emerge Monday

By Sara Rosenberg

New York, May 6 - TOP Tankers Inc. pushed back pricing of its $300 million perpetual convertible preferred offering due to market conditions, with the new pricing date expected to be announced on Monday, according to a market source.

The deal, which was expected to price after the close Thursday, is now anticipated to come either next week or the week after, the source added.

Cantor Fitzgerald is sole bookrunner of the Rule 144A offering.

Earlier this week, price talk on the deal had been sweetened, with the dividend going up to 5.875% to 6.0% from 5.625% to 5.875% and the initial conversion premium to 30% to 32.5% from a range of 32.5% to 37.5%.

Furthermore, puts were added in years 10 and 15, where as initially there was only a put option in year five.

The issue will be non-callable for five years. There is full dividend protection, as well as takeover protection, for holders.

A $45 million greenshoe is available.

The issue is effectively being sold on swap, as the Athens-based shipping company also said that it has been advised that Kingdom Holdings, one of its shareholders, intends to purchase about $20 million of TOP Tankers common shares from purchasers of the convertible.

Also, the company said it plans to use about $50 million of proceeds to repurchase stock.

Remaining proceeds will be used to fund vessel acquisitions and for general corporate purposes.

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