The Bermuda-based shipping company announced it entered definitive agreements with investors to buy a total of 23,076,924 of its stock at $6.50 a share in a direct offering.
After paying placement fees DHT expects net proceeds of about $145.5 million from the offering.. The company will use the proceeds from the offering, along with proceeds from its private convertible debt financing, to fund it acquisition of Singapore-based Samco Shipholding.
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The offering is expected to close on or about Sept. 15.
TheStreet Ratings team rates DHT HOLDINGS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DHT HOLDINGS INC (DHT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."