Tuesday 24 September 2013

Paragon Shipping makes $30million public offering !

Car Shipping Company
Paragon Shipping Inc. announced yesterday that it has upsized and priced a $30 million public offering consisting of 5,217,391 of its Class A common shares at $5.75 per share.

The offering is expected to close on September 27, 2013.  Paragon Shipping has granted the underwriters a 45-day option to purchase an additional 782,609 Class A common shares to cover over-allotments, if any.  The net proceeds from the offering after the underwriting discount and other offering expenses payable by Paragon Shipping are expected to be approximately $27.787 million.

The majority of the net proceeds of the offering are expected to be used by Paragon Shipping to fund the initial deposits and other costs associated with the purchase of two Ultramax newbuilding drybulk carriers with scheduled delivery in May and July 2014, respectively.  Paragon Shipping has agreed to acquire these vessels from an affiliated entity, subject to the closing of the offering, the assignment to Paragon Shipping by the seller of refund guarantees from the shipyard, which are expected to be received by the seller prior to the closing of this offering, and customary closing conditions. The remainder of the net proceeds are expected to be used for general corporate purposes, which may include additional newbuilding and secondhand vessel acquisitions and/or the repayment of debt.

Maxim Group LLC is acting as joint book-running manager and lead managing underwriter of the offering.  Global Hunter Securities and National Securities Corporation, a wholly owned subsidiary of National Holdings Inc. (NHLD), are acting as joint book-running managers of the offering


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