Star Bulk Announces Conversion of All Eagle Bulk Convertible Notes
Star Bulk Carriers Corp. (Nasdaq: SBLK) has announced the conversion of all 5% Convertible Senior Notes issued by its subsidiary, Eagle Bulk Shipping Inc., into 5,971,290 newly issued shares of Star Bulk common stock. The conversion ratio was 86.0801 shares per $1,000 principal amount of notes. Additionally, 1,341,584 loaned shares are expected to be returned and cancelled by August 1, 2024. Following these transactions, Star Bulk's current share count will be 118,825,307, with outstanding debt at $1,381 million. This conversion marks a significant change in the company's capital structure, potentially impacting its financial position and shareholder value.
Star Bulk Carriers Corp. (Nasdaq: SBLK) ha annunciato la conversione di tutte le Note Senior Convertibili al 5% emesse dalla sua controllata, Eagle Bulk Shipping Inc., in 5.971.290 nuove azioni ordinarie di Star Bulk. Il rapporto di conversione era di 86,0801 azioni per un capitale principale di 1.000 dollari delle note. Inoltre, si prevede che 1.341.584 azioni prese in prestito vengano restituite e cancellate entro il 1° agosto 2024. Dopo queste operazioni, il numero totale di azioni di Star Bulk sarà di 118.825.307, con debito in essere di 1.381 milioni di dollari. Questa conversione segna un cambiamento significativo nella struttura del capitale dell'azienda, potenzialmente influenzando la sua posizione finanziaria e il valore per gli azionisti.
Star Bulk Carriers Corp. (Nasdaq: SBLK) ha anunciado la conversión de todas las Notas Senior Convertibles al 5% emitidas por su subsidiaria, Eagle Bulk Shipping Inc., en 5.971.290 nuevas acciones ordinarias de Star Bulk. La relación de conversión fue de 86.0801 acciones por cada 1.000 dólares de principal de las notas. Además, se espera que 1.341.584 acciones prestadas sean devueltas y canceladas antes del 1 de agosto de 2024. Tras estas transacciones, el número total de acciones de Star Bulk será de 118.825.307, con deuda pendiente de 1.381 millones de dólares. Esta conversión marca un cambio significativo en la estructura de capital de la empresa, lo que podría impactar su posición financiera y el valor para los accionistas.
Star Bulk Carriers Corp. (Nasdaq: SBLK)는 자회사인 Eagle Bulk Shipping Inc.에서 발행한 모든 5% 전환형 선 Senior Notes를 5,971,290주의 신규 발행 주식으로 전환한다고 발표했습니다. 전환 비율은 1,000달러의 원금에 대해 86.0801주였습니다. 추가로, 1,341,584주의 대여 주식이 2024년 8월 1일까지 반환 및 취소될 것으로 예상됩니다. 이러한 거래 후, Star Bulk의 현재 주식 수는 118,825,307주가 되며, 부채 잔액은 13억 8,100만 달러입니다. 이 전환은 회사의 자본 구조에 중대한 변화를 가져오며, 재무 상태와 주주 가치를 잠재적으로 영향을 미칠 수 있습니다.
Star Bulk Carriers Corp. (Nasdaq: SBLK) a annoncé la conversion de toutes les Obligations Senior Convertibles à 5% émises par sa filiale, Eagle Bulk Shipping Inc., en 5.971.290 nouvelles actions ordinaires de Star Bulk. Le ratio de conversion était de 86,0801 actions pour 1.000 dollars de montant principal des obligations. De plus, 1.341.584 actions empruntées devraient être retournées et annulées d'ici le 1er août 2024. Suite à ces transactions, le nombre total d'actions de Star Bulk sera de 118.825.307, avec une dette en cours de 1.381 millions de dollars. Cette conversion marque un changement significatif dans la structure du capital de l'entreprise, pouvant potentiellement influencer sa situation financière et la valeur pour les actionnaires.
Star Bulk Carriers Corp. (Nasdaq: SBLK) hat die Umwandlung aller 5%-Wandelanleihen, die von ihrer Tochtergesellschaft, der Eagle Bulk Shipping Inc., ausgegeben wurden, in 5.971.290 neu ausgegebene Aktien von Star Bulk bekannt gegeben. Das Umwandlungsverhältnis lag bei 86,0801 Aktien pro 1.000 Dollar Nennwert der Anleihen. Darüber hinaus wird erwartet, dass 1.341.584 geliehene Aktien bis zum 1. August 2024 zurückgegeben und storniert werden. Nach diesen Transaktionen wird die aktuelle Aktienanzahl von Star Bulk 118.825.307 betragen, mit ausstehenden Schulden von 1.381 Millionen Dollar. Diese Umwandlung stellt einen bedeutenden Wandel in der Kapitalstruktur des Unternehmens dar, der möglicherweise seine finanzielle Lage und den Wert für die Aktionäre beeinflusst.
- Conversion of all Convertible Notes eliminates future debt obligation
- Increase in total outstanding shares by 5,971,290, potentially improving liquidity
- Dilution of existing shareholders' ownership due to the issuance of 5,971,290 new shares
- Potential downward pressure on stock price due to increased share supply
Insights
Star Bulk's announcement of the conversion of all Eagle Bulk Convertible Notes marks a significant shift in the company's capital structure. This move eliminates
The conversion ratio of 86.0801 shares per
The expected return and cancellation of the 1,341,584 Loaned Shares is a positive development, partially offsetting the dilution effect. Post-transaction, the company's share count will increase to 118,825,307 and outstanding debt will decrease to
This transaction strengthens Star Bulk's balance sheet by reducing leverage and interest expenses. However, the dilution may put short-term pressure on earnings per share. Long-term, this could enhance financial flexibility and potentially improve the company's credit profile, which may lead to lower borrowing costs in the future.
The conversion of Eagle Bulk's Convertible Notes into Star Bulk common stock signals investor confidence in the dry bulk shipping sector. This move comes at a time when the Baltic Dry Index, a key indicator of shipping rates, has shown volatility but remains above historical averages.
The decision by noteholders to convert rather than receive cash repayment suggests optimism about Star Bulk's future prospects and the broader shipping market. This could be driven by several factors:
- Expectations of continued global economic recovery post-pandemic
- Anticipated increase in commodity demand, particularly from China
- Potential supply chain disruptions that could benefit shipping companies
The conversion also aligns with a broader trend in the shipping industry of deleveraging and strengthening balance sheets. This positions Star Bulk more favorably to navigate market fluctuations and potentially pursue growth opportunities or return capital to shareholders.
Investors should monitor how this change in capital structure affects Star Bulk's financial ratios, such as debt-to-equity and return on equity, in the coming quarters. The market's reaction to this news could provide insights into investor sentiment towards the dry bulk shipping sector as a whole.
ATHENS, Greece, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (Nasdaq: SBLK), today announced that all the
In connection with the Convertible Notes, 1,341,584 shares (“Loaned Shares”) of Star Bulk have been loaned out as part of a share lending agreement with Jefferies Capital Services, LLC (“JCS”). It is expected that the Loaned Shares will be returned by JCS and cancelled by the Company upon the expiration date of the Convertible Notes on August 1, 2024.
Taking into account the above transactions, our current share count will be 118,825,307 and our current outstanding debt
About Star Bulk
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk’s vessels transport major bulks, which include iron ore, minerals and grain, and minor bulks, which include bauxite, fertilizers and steel products. Star Bulk was incorporated in the Marshall Islands on December 13, 2006 and maintains executive offices in Athens, New York, Limassol, Singapore, Germany and Denmark. Its common stock trades on the Nasdaq Global Select Market under the symbol “SBLK”. As of August 1st, 2024, Star Bulk has a fleet of 156 owned vessels, with an aggregate capacity of 15.0 million dwt, consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt.
Contacts
| Company: Simos Spyrou, Christos Begleris Co ‐ Chief Financial Officers Star Bulk Carriers Corp. c/o Star Bulk Management Inc. 40 Ag. Konstantinou Av. Maroussi 15124 Athens, Greece Email: info@starbulk.com www.starbulk.com | Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1540 New York, NY 10169 Tel. (212) 661‐7566 E‐mail: starbulk@capitallink.com www.capitallink.com |
FAQ
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