New York-quoted Tsakos on Thursdayunveiled the plan after striking a distribution agreement with Jefferies, an investment bank based in Manhattan.
The deal gives the agent the ability to sell shares to third parties “from time to time” inexchange for a commission or build its own position, according to prospectussupplement filed with securities regulators.
“We planto use the net proceeds from the sale of the common shares offered by this prospectussupplement for general corporate purposes, which may include vessel acquisitions,debt repayment and working capital,” Tsakos told investors.
When thecompany filed the supplement with the US Securities and ExchangeCommission its shares were fetching $5.07 a piece, which means it would be poisedto raise more than $20m if all 4 million units were sold at this price.
WhileTsakos didn’t identify acquisition candidates it noted that an option to builda second LNG carrier at Hyundai Heavy Industries in South Korea expires on 31October 2013 and pointed out that it has not yet secured bank financing for thefirst 174,000-cbm newbuilding.
Inaddition the operator said it is still renegotiating the terms of an $88m shuttletanker contract with Sungdong Shipbuilding. The initial deal was replaced by anorder for two vessels but it’s unclear what type of ships will chosen as replacements.
While thespecifications are yet to be determined observers say Tsakos is unlikely toventure far from its comfort zone. Today its 48-vessel fleet includes products, chemical andconventional crude carriers in addition to shuttle tankers and LNG carriers.
You can read Tsakos' prospectus supplement in full by clicking on the link located under the Related Media section to the right of this article
