DryShips announces launching of atm equity offering
DryShips Inc. , a global provider of marine transportation services for drybulk and petroleum cargoes and through its majority owned subsidiary, Ocean Rig UDW Inc. (“Ocean Rig”), of offshore deepwater drilling services, today announced that it has entered in to an Equity Offering Sales Agreement, dated October 4, 2013, with Evercore Group L.L.C., or Ever core, for the offer and sale of up to $200.0 million of common shares of Dryships Inc, the Company said in a press release.
In accordance with the terms of the sales agreement, the Company may offer and sell its common shares at any time and from time to time through Evercore as its sales agent. Sales of the common shares, if any, will be made by means of ordinary brokers’ tran sactions on The Nasdaq Global Select Market or otherwise at market prices prevailing at the time of sal e, at prices related to the prevailing market prices, or at negotiated prices.
George Economou, Chairman and Chief Execu tive Officer of the Company commented: “Drybulk shipping rates and ship values have increased recently a nd we believe this trend will continue particularly in the larger asset classes. Given the improved market backdrop, we believe this is an opportune time to flexibly access the equity capital mark ets to reduce some or all of our funding needs through 2014 that we currently estim ate at $150 million. In addition, we are nearing agreements with certain banking syndicates to reduce our debt service payments over the next year and adjust certain financial covenants. Finally, we are pleased to report that Ocean Rig continues to improve its level of performance. Preliminary data for the third quarter of 2013 indicates that the Ocean Rig fleet operated at a 98.5% operating efficiency on available for drilling da ys, which is a record for Ocean Rig.’’
About DryShips
DryShips Inc. is an owner of drybulk carriers and ta nkers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 11 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater se misubmersible drilling rigs and 9 ultra deepwater drillships, two of which are scheduled to be deliver ed to the Company during 2013 and two of which are scheduled to be delivered during 2015. DryShips owns a fleet of 42 drybulk carriers (including newbuildings), comprising 12 Capesize, 28 Panamax and 2 Supramax, with a combined deadweight tonnage of about 4.4 million t ons, and 10 tankers, comprising 6 Su ezmax and 4 Aframax, with a combined deadweight tonnage of over 1.3 million tons.