Greek energy transportation group Tsakos Energy Navigation (NYSE:TNP) has decided to tap investors for fresh equity, despite continuing worries of the Greek economy and the European sovereign debt crisis, the New York-listed firm said.
The company has mandated Credit Suisse as the book-runner for the stock offering. Morgan Stanley (NYSE:MS) has been hired as senior co-manager for the offering, while Clarkson Capital Markets, Dahlman Rose & Co and Brock Capital are co-managing the issue.
Tsakos Energy is issuing 10m ordinary shares at a price of USD6.50 (EUR4.95) each, 3.4% below the closing price of the company’s stock on 18 April. The underwriters also have the right to buy up to an additional 1.5m shares within 30 days of the closing of the offering. Affiliates of the company’s biggest shareholder, Tsakos Holdings Foundation, have agreed to buy 2m of the shares offered by Tsakos Energy.
The stock is being issued by means of a prospectus supplement and accompanying base prospectus pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission. The closing of the sale is expected on 24 April, subject to the satisfaction of customary closing conditions.
Tsakos Energy expects gross proceeds of around USD65m from the offering. It intends to use the funds to finance growth initiatives, working capital and other general corporate purposes.