Peter Georgiopoulos-led Gener8 hopes to net USD246 million from its initial public offering, according to a new securities filing.
On 15 June, the tanker owner disclosed plans to sell 15 million shares for USD17-19/share, with 2.25 million additional shares available through the underwriter option.
At the midpoint of the target range, this would equate to gross proceeds of USD270 million (USD310.5 with the full underwriter option) or net proceeds after expenses of USD246 million (USD284 million with the full underwriter option).
Of total net proceeds, USD87 million would be used to reduce the balance on senior credit facilities in connection with a planned refinancing. Remaining proceeds could be used for shipyard instalments or new vessel acquisitions.
The 15 June prospectus reveals that six private equity groups (Oaktree, BlueMountain, Avenue Capital, Aurora, BlackRock and Monarch Alternative Capital) currently own 60% of the company’s shares. Their aggregate stake would decrease to 49% after the IPO.
Gener8 was formed by the merger of General Maritime and Navig8 Crude Tankers, which closed on 7 May. The company currently has 25 tankers on the water and 21 VLCC newbuilds due for delivery through February 2017.