By Stephanie N. Rotondo
Phoenix, Sept. 15 – Scorpio Bulkers Inc. priced $65 million of 7.5% $25-par five-year senior notes at par on Monday, the company said in a press release.
The notes priced at the tight end of 7.5% to 7.625% price talk.
The company launched the deal on Wednesday after announcing its intent to sell the notes on Aug. 7. On Thursday, the company said it had upsized the deal to $60 million from $35 million.
Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc. and Jefferies LLC are the bookrunners.
The notes can be redeemed beginning Sept. 15, 2016 or upon a taxation change at par plus accrued interest. Holders can require the company to repurchase the notes at 101% of par plus accrued interest upon a change of control.
Under the covenants of the note indenture, the company’s net borrowings cannot equal or exceed 70% of its total assets, and it must keep its tangible net worth above $500 million.
The Monaco-based shipping company plans to use the proceeds to fund installment payments due under its newbuilding program. Any remaining proceeds will be used for general corporate purposes and working capital.
| Issuer: | Scorpio Bulkers Inc.
|
| Securities: | Senior unsecured notes
|
| Amount: | $65 million
|
| Greenshoe: | $9.75 million
|
| Maturity: | Sept. 15, 2019
|
| Bookrunners: | Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc., Jefferies LLC
|
| Co-managers: | BB&T Capital Markets, Janney Montgomery Scott LLC, Wunderlich Securities, Inc., MLV & Co. LLC
|
| Coupon: | 7.5%
|
| Price: | Par of $25.00
|
| Yield: | 7.5%
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| Talk: | 7.5% to 7.625%
|
| Call options: | On or after Sept. 15, 2016 or upon a taxation change at par plus accrued interest or at 101% of par plus accrued interest upon a change of control
|
| Pricing date: | Sept. 15
|
| Settlement date: | Sept. 22
|
| Expected listing: | NYSE: SLTB
|
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