Scorpio Bulkers said it will offer, issue, and sell up to $200 million of its common stock in a public offering. The company said it reserved up to $15 million of common shares to sell to Scorpio Services and executive officers of the company at the public offering price.
The shipping company granted the underwriters of the deal a 30-day option to buy up to an additional $30 million of common shares.
Scorpio Bulkers said the proceeds of the offering will go to installments payments due under its Newbuilding Program, for general corporate purposes, and for working capital.
About 3.6 million shares of Scorpio Bulkers were traded by 10:53 a.m. Wednesday, above the company's average trading volume of about 1.1 million shares a day.
TheStreet Ratings team rates SCORPIO BULKERS as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCORPIO BULKERS (SALT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."