PRGN readies bond offering

Greek bulker owner Paragon Shipping has returned to the capital markets for the cash it needs to slash debt.
Michael Bodouroglou, boss of Paragon Shipping.

Paragon Shipping chief executive Michael Bodouroglou.

In a statement Nasdaq-quoted Paragon, which is led by chief executive Michael Bodouroglou, outlined plans to offload senior unsecured notes due 2021.

Terms of the proposed offering were not disclosed but the company mentioned the bonds will be issued in minimum denominations of $25.00 a piece.

Paragon said it intends to list the notes on the New York Stock Exchange and plans to use net proceeds to repay outstanding debt and for general corporate purposes.

Deutsche Bank Securities and Jefferies were identified as joint book-running managers. The company said Maxim Group and MLV & Co will serve as co-managers.

While Deutsche Bank, Jefferies and Maxim are well-known names in shipping circles, MLV is seen as a relative newcomer to the space even though the investment bank has been involved in a handful of shipping deals in recent years.

Industry observers note the firm, which recrutied industry veteran Natasha Boyden as an analyst earlier this year, worked on a follow-on equity offering for Paragon’s Nasdaq-quoted containership spinoff Box Ships in 2013.

When Boyden initiated research coverage of Paragon and seven other US-quoted bulker operators back in May the forecaster branded the Greek owner with a “hold” rating. At last check shares were commanding $4.76 a piece.

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