Star Bulk Completes Backstopped Equity Rights Offering and Raises $80 Million
ATHENS, GREECE -- (Marketwired) -- 07/25/13 -- Star Bulk Carriers
Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), announced today
the successful completion of the Company's previously announced $75
million backstopped equity rights offering and concurrent private
placement. Due to the level of participation by existing
shareholders, back stop providers were issued the minimum amounts
under their purchase commitments and the total gross proceeds of this
capital raising transaction increased to approximately $80.1 million.
The rights offering expired on July 19, 2013 and was backstopped by
certain existing shareholders and other investors, including
investment funds managed by Oaktree Capital Management L.P.,
investment funds managed by Monarch Alternative Capital LP, BlueShore
Global Equity Fund L.P., Far View Partners L.P. and certain of the
Company's directors and executive officers. As a result of the
participation by the existing shareholders in the rights offering and
the terms of agreement with the entities backstopping the rights
offering, the Company issued an aggregate of 15,338,861 common shares
in the rights offering and in a private placement pursuant to the
transactions described in the Company's registration statement on
Form F-1 that was initially filed with the Securities and Exchange
Commission on May 2, 2013.
The Company has agreed to use the net proceeds from this offering to
enhance liquidity and to partially fund the purchase price of our
previously announced newbuilding program, which consists of contracts
for the construction of two fuel-efficient 180,000 dwt Capesize
drybulk carriers and two fuel-efficient 60,000 dwt Ultramax dry bulk
Spyros Capralos, President and CEO of Star Bulk, commented: "This is
a milestone for Star Bulk that has allowed us to enter into
newbuilding orders to expand our fleet with modern fuel efficient
ships at very attractive prices. The offering validates the
confidence from our existing shareholders and new investors in the
Company and our strategy. We are pleased to welcome Oaktree Capital
Management and Monarch Alternative Capital to our group of new
shareholders. We believe that our strategy will enable us to create
value for our shareholders."
Evercore Partners served as the financial advisor to the Company for
the rights offering and the private placement offering.
About Star Bulk
Star Bulk is a global shipping company providing
worldwide seaborne transportation solutions in the dry bulk sector.
Star Bulk's vessels transport major bulks, which include iron ore,
coal and grain and minor bulks which include bauxite, fertilizers and
steel products. Star Bulk was incorporated in the Marshall Islands on
December 13, 2006 and maintains executive offices in Athens, Greece.
Its common stock trades on the Nasdaq Global Market under the symbol
"SBLK". Currently, Star Bulk has an operating fleet of thirteen dry
bulk carriers. The total fleet consists of five Capesize and eight
Supramax dry bulk vessels with a combined cargo carrying capacity of
1,290,602 deadweight tons. The average age of our current operating
fleet is approximately 10.5 years. Additionally, we have five
third-party dry bulk vessels under our management, consisting of one
Capesize vessel, two Supramax vessels and two Panamax vessels and we
have been sub-contracted for certain management services, including
crewing, purchasing and insurances, for seven product tankers. The
total combined cargo carrying capacity of these vessels amounts to
760,218 deadweight tons. We have also entered into agreements for the
construction of two 180,000 deadweight ton, fuel efficient, Capesize
drybulk vessels to be delivered in Q4 2015 and Q1 2016, respectively,
and letters of intent for the construction of two 60,000 deadweight
ton, fuel efficient, Ultramax drybulk vessels to be delivered in
Matters discussed in this press release
may constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to provide
prospective information about their business. Forward-looking
statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The words "believe," "anticipate," "intends,"
"estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, examination by the
Company's management of historical operating trends, data contained
in its records and other data available from third parties. Although
the Company believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to
predict and are beyond the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections.
In addition to these important factors, other important factors that,
in the Company's view, could cause actual results to differ
materially from those discussed in the forward-looking statements
include the strength of world economies and currencies, general
market conditions, including fluctuations in charter rates and vessel
values, changes in demand for dry bulk shipping capacity, changes in
the Company's operating expenses, including bunker prices, drydocking
and insurance costs, the market for the Company's vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption
of shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other factors. Please see
our filings with the Securities and Exchange Commission for a more
complete discussion of these and other risks and uncertainties. The
information set forth herein speaks only as of the date hereof, and
the Company disclaims any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this communication.
Star Bulk Carriers Corp.
c/o Star Bulk Management Inc.
40 Ag. Konstantinou Av.
Investor Relations / Financial Media:
Capital Link, Inc.
230 Park Avenue, Suite 1536
New York, NY 10169
Tel. (212) 661-7566
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