Baltic Trading Ltd. IPO Prices Within Range

| About: Baltic Trading (BALT)

Baltic Trading Ltd (NYSE:BALT), a company formed by Genco Shipping (NYSE:GNK) to acquire a spot market focused drybulk fleet, priced its IPO on Tuesday at $14.00.

Business Overview (from prospectus)

We are a newly formed New York City-based company incorporated in October 2009 in the Marshall Islands to conduct a shipping business focused on the drybulk industry spot market. We were formed by Genco Shipping & Trading Limited (GNK), a leading international drybulk shipping company that will also serve as our Manager. We intend to leverage the expertise and reputation of Genco to pursue growth opportunities in the drybulk shipping spot market. To pursue these opportunities, we plan to acquire and operate a fleet of drybulk ships that will transport iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. We anticipate that our initial fleet will consist of four Supramax vessels and two Capesize vessels. We plan to operate all of our vessels in the spot market, on spot market-related time charters, or in vessel pools trading in the spot market.

Offering: 16.3 million shares at $14 per share. Net proceeds of approximately $284 million (from offering and capital contribution by Genco) will be used to acquire six vessels.

Lead Underwriters: Morgan Stanley (NYSE:MS), Dahlman Rose & Co

Financial Highlights:

Baltic Trading Limited is a newly formed company and has no results of operations. The company does not expect to have any revenues until they acquire at least one vessel and commence a charter for such vessel, after which time their revenues will consist primarily of charterhire. Their ongoing cash expenses are expected to consist of fees and reimbursements and other expenses directly related to the operation of their vessels and certain administrative expenses.


We expect our business to fluctuate in line with the main patterns of trade of the major drybulk cargoes and vary according to changes in the supply and demand for these items. We plan to operate in markets that are highly competitive and based primarily on supply and demand. We expect to compete for charters on the basis of price, vessel location and size, age and condition of the vessel, as well as on our reputation as an owner and operator. We expect to compete with other owners of drybulk carriers in the Capesize, Panamax, Supramax, Handymax and Handysize class sectors, some of whom may also charter our vessels as customers. Ownership of drybulk carriers is highly fragmented and is divided among approximately 1,300 independent drybulk carrier owners. In addition, Genco (GNK) may compete with us and is not contractually restricted from doing so.

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