ATHENS, Greece, July 12, 2012 /PRNewswire/ -- Box Ships Inc. (NYSE: TEU) today announced that it intends to offer and sell $30,000,000 of its common shares in an underwritten public offering. The Company intends to grant the underwriters a 30-day option to purchase an additional $4,500,000 of its common shares to cover over-allotments, if any. Neige International Inc., a company controlled by our Chairman, President and Chief Executive Officer, Mr. Michael Bodouroglou, is expected to purchase up to 2.6% of the common shares sold in the offering at the public offering price. The Company intends to use a portion of the net proceeds of the offering to redeem 692,641 of the 1,333,333 9.75% Series B Cumulative Redeemable Perpetual Preferred Shares issued to Neige International Inc. in a previously announced private transaction, the proceeds of which were used to partially finance the acquisition price of the vessels OOCL Hong Kong and OOCL China delivered to us on June 25, 2012 and July 5, 2012, respectively, at a price equal to the liquidation preference of $30.00 per share, plus accrued and unpaid dividends, and for general corporate purposes, which may include the repayment of debt. Barclays, Credit Suisse and Deutsche Bank Securities are acting as joint book runners of the offering. Dahlman Rose & Company is acting as co-manager for the offering. This offering is being made only by means of a prospectus supplement and accompanying base prospectus. When available, copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained from Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (or by telephone at 1-888-603-5847 or by email to Barclaysprospectus@broadridge.com), Credit Suisse at Credit Suisse Securities ( USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010 (or by telephone at 1-800-221-1037 or by e-mail to firstname.lastname@example.org) or Deutsche Bank Securities Inc., Attention: Prospectus Department, 60 Wall Street, New York, New York 10005-2836 (or by telephone at 1-800-503-4611 or by e-mail to email@example.com). A shelf registration statement relating to the shares was filed with the SEC and is effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
In trading on Wednesday, shares of Box Ships Inc's 9.00% Series C Cumulative Redeemable Perpetual Preferred Shares were yielding above the 12% mark based on its quarterly dividend (annualized to $2.25), with shares changing hands as low as $18.55 on the day. This compares to an average yield of 9.96% in the "Shipping" preferred stock category, according to Preferred Stock Channel.