Rand Logistics raises $16.1 million, signs vessel acquisition agreements
Great Lakes bulker operator Rand Logistics, Inc. (Nasdaq:RLOG) reports that it has successfully closed its public underwritten offering of 2,800,000 shares of common stock at $6.00 per share. Proceeds, net of underwriter's commissions, were $16.1 million, MarineLog reported.
Rand expects to use the net proceeds of the offering to partially fund the anticipated acquisition of two dry bulk carriers, one of which is a self-unloader, and for general corporate purposes. With respect to the anticipated acquisitions, Rand also announced today that it has entered into agreements to purchase the two bulk carriers for a total purchase price of $25 million. The acquisition of the self-unloading vessel (which is an integrated tug/barge unit) is subject to Rand obtaining acceptable debt financing for such acquisition. Rand anticipates investing an additional $10 million to modify the two bulk carriers.
Scott Bravener, President of Lower Lakes, commented, "We are very pleased to announce the signing of the vessel acquisition agreements. The acquisition of additional vessels not currently operating on the Great Lakes will allow us to meet the growing needs of our customers. We believe that the self-unloading dry bulk carrier is the only Jones Act-compliant vessel currently operating outside the Great Lakes with dimensions that allow for it to be transferred into the Great Lakes. Based on current market conditions, we believe that substantially all of the 2012 sailing days related to the new vessels will be utilized in servicing existing and new customers.
Rand expects to use the net proceeds of the offering to partially fund the anticipated acquisition of two dry bulk carriers, one of which is a self-unloader, and for general corporate purposes. With respect to the anticipated acquisitions, Rand also announced today that it has entered into agreements to purchase the two bulk carriers for a total purchase price of $25 million. The acquisition of the self-unloading vessel (which is an integrated tug/barge unit) is subject to Rand obtaining acceptable debt financing for such acquisition. Rand anticipates investing an additional $10 million to modify the two bulk carriers.
Scott Bravener, President of Lower Lakes, commented, "We are very pleased to announce the signing of the vessel acquisition agreements. The acquisition of additional vessels not currently operating on the Great Lakes will allow us to meet the growing needs of our customers. We believe that the self-unloading dry bulk carrier is the only Jones Act-compliant vessel currently operating outside the Great Lakes with dimensions that allow for it to be transferred into the Great Lakes. Based on current market conditions, we believe that substantially all of the 2012 sailing days related to the new vessels will be utilized in servicing existing and new customers.