By Krishna N Das
BANGALORE, Dec 3 (Reuters) - DryShips Inc said its offshore drilling unit plans to sell shares worth about $500 million, reducing the parent's stake by about a fifth, as it goes all out to raise financing to build new drillships.
Shares of the Greek company rose 13 percent to $5.90 -- their highest in eight months -- in volumes that made the stock the second-highest traded on Nasdaq.
Optimistic about a turnaround in the drilling market, Dryships has been able to secure financing for its new drillships, or rigs, through loans and share offerings.
DryShips started out as a drybulk shipper before foraying into the drilling business in 2008 -- a move that pressured its finances as the company struggled to win contracts and garner funds to build the rigs.
The company said on Thursday it signed a commitment letter for a $325 million bridge loan facility to fund one of its four rigs currently under construction. It also completed a sale of shares to raise $350 million.
The firm, which recently secured options to build four new rigs at a cost of about $600 million each, may also use the proceeds from the stake sale in its unit to exercise the options.
After the offering, which is expected to close later this month, DryShips' stake in OceanRig UDW Inc will fall to about 78-80 percent, the company said in a statement.
The offering will be made to Norwegian investors, certain other non-U.S. persons and to institutional buyers in the United States via a private placement.
(Reporting by Krishna N Das in Bangalore; Editing by Don Sebastian) Keywords: DRYSHIPS/ (Krishna.das@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: Krishna.das.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BANGALORE, Dec 3 (Reuters) - DryShips Inc said its offshore drilling unit plans to sell shares worth about $500 million, reducing the parent's stake by about a fifth, as it goes all out to raise financing to build new drillships.
Shares of the Greek company rose 13 percent to $5.90 -- their highest in eight months -- in volumes that made the stock the second-highest traded on Nasdaq.
Optimistic about a turnaround in the drilling market, Dryships has been able to secure financing for its new drillships, or rigs, through loans and share offerings.
DryShips started out as a drybulk shipper before foraying into the drilling business in 2008 -- a move that pressured its finances as the company struggled to win contracts and garner funds to build the rigs.
The company said on Thursday it signed a commitment letter for a $325 million bridge loan facility to fund one of its four rigs currently under construction. It also completed a sale of shares to raise $350 million.
The firm, which recently secured options to build four new rigs at a cost of about $600 million each, may also use the proceeds from the stake sale in its unit to exercise the options.
After the offering, which is expected to close later this month, DryShips' stake in OceanRig UDW Inc will fall to about 78-80 percent, the company said in a statement.
The offering will be made to Norwegian investors, certain other non-U.S. persons and to institutional buyers in the United States via a private placement.
(Reporting by Krishna N Das in Bangalore; Editing by Don Sebastian) Keywords: DRYSHIPS/ (Krishna.das@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: Krishna.das.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.