ATM restocked

George Economou has restocked his ATM shortly after DryShips completed a $500m offering.

George Economou.

Nasdaq-listed DryShips says it will sell up to $475m shares in its second ATM equity offering of 2009.

In an SEC filing, DryShips says it may offer the shares from time to time through sales agent, Merrill Lynch.

It anticipates the move, which based on its last closing price of $10.70 per share could see 44,392,523 shares sold, will raise $464.9m after deductions.

DryShips added: “We will use the net proceeds from the sale of securities ... to opportunistically acquire additional dry-bulk vessels in the current market environment, and for working capital, existing capital expenditures, repayment of indebtedness, general corporate purposes and, as needed, to continue to enhance our liquidity and to assist us in complying with our loan covenants.”

This ATM offering comes a month after the bulker owner wrapped up the sale of 95,669,595m shares in a series of transactions worth $487.5m.

Martin Sommerseth Jaer, who follows DryShips for Arctic Securities and has a “sell” rating on the shipowner’s stock, says today’s announcement is not a surprise.

He told TradeWinds: “If you look at the extreme leverage in the company, this is an obvious outcome. The equity market is willing to purchase overpriced DryShips shares so why not issue stock?

“It is selling a dime for a dollar and, interestingly, the more dimes it sells for a dollar the more accretive it is for previous shareholders as it aids net asset value."

This is because the equity is being raised at share price levels above underlying NAV, he explains.

Based in Athens, DryShips owns 42 bulkers totalling 4m dwt, as well as two drilling rigs and a pair of drillship newbuildings.

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