DryShips announces $200M stock offering, shares -7.4% AH


DryShips (DRYS), which had a market cap of just $1.53B as of today's close, is offering the shares via Evercore. (PR)

CEO George Economou: "Drybulk shipping rates and ship values have increased recently and we believe this trend will continue particularly in the larger asset classes ... we believe this is an opportune time to flexibly access the equity capital markets to reduce some or all of our funding needs through 2014 that we currently estimate at [$150M]."

He adds DryShips is "nearing agreements" with banks to lower debt service payments over the next year and adjust covenant terms, and that the company's Ocean Rig fleet operated at a record 98.5% efficiency in Q3 on available for drilling days.

DryShips had $4.44B in debt at the end of Q2, and $511.4M in cash/equivalents.

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Comments (9)
  • Philip Marlowe
    , contributor
    Comments (1571) | Send Message
     
    Another day another dry bulk company dilutes. As I have been saying here, the best bet in the sector is SB. They are not buried in debt, they have enough cash and cash flow and credit facilities for all their operational, dividend and capex needs, and their management owns 60% of the company. The above factors combined indicate that SB is very unlikely to issue new common stock.

     

    The dry bulk charter rates are rising again, so it is safe to say money will be made in this sector, as long as one finds a company that treats their shareholders well. And I believe SB is that company.
    4 Oct 2013, 07:18 PM Reply Like
  • Fanebrb
    , contributor
    Comments (663) | Send Message
     
    Why didn't you tell me 5 years ago? I now have 2,700 shs. of DRYS. What can I do?
    5 Oct 2013, 01:09 AM Reply Like
  • RicJensen
    , contributor
    Comments (3574) | Send Message
     
    Hold on to it. Capital solves all issues except dilution. I'll see your 2.7K with my 55K.
    5 Oct 2013, 09:50 AM Reply Like
  • Fanebrb
    , contributor
    Comments (663) | Send Message
     
    Yes, after all this time I will... and in the future sell some Calls and use an 8 percent "buy back" feature if it keeps going up. I hate being locked in on a rising stock ! Good Luck to you too.
    5 Oct 2013, 04:54 PM Reply Like
  • wGraves
    , contributor
    Comments (191) | Send Message
     
    See your 55 and raise you 75.
    6 Oct 2013, 08:32 PM Reply Like
  • Grand Nagus Kelly
    , contributor
    Comments (1837) | Send Message
     
    I like $DAC also but missed the boat when it was in the 2's. $TEU looks good. I must admit I am shocked that the good and honorable Mr. Economou would dilute shares with this offering. He must have good reason to be so unkind to his current shareholders as his reputation for kindness to shareholders is well known.
    4 Oct 2013, 07:33 PM Reply Like
  • RicJensen
    , contributor
    Comments (3574) | Send Message
     
    Easy to say at 3 and change. They weren't whining at 100. DRYS is still floating. That alone is major props to GE. Did he over build, sure, who didn't. ORIG was a smart decision and saved us all. Now let's see where he goes.....
    5 Oct 2013, 09:55 AM Reply Like
  • Gordon Z
    , contributor
    Comments (153) | Send Message
     
    funny Joe, real funny ... I might add that Mr. Economou does not beat his wife very frequntly either
    5 Oct 2013, 08:41 AM Reply Like
  • User 305025
    , contributor
    Comment (1) | Send Message
     
    Wonder how much good George and his friends sold before making the latest diluting announcement?

     

    Last quarter ,just before the ride up on the stock he projected a flat quarter

     

    When Drys road high,he was not projecting a ninety eight per cent loss...or any reduction in price to the best of my memory

     

    Buy more on the dip !!
    5 Oct 2013, 11:51 AM Reply Like
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