Nordic American Tankers (NYSE:NAT) has announced that it will issue $87 million in new stock, in the form of common shares in an underwritten public flotation. The ocean transport company's underwriters have been granted a 30-day purchase option for up to an additional $13.05 million worth of stock. CEO Herbjorn Hansson is expected to purchase roughly $1.5 million in shares.
NAT said it plans to use the proceeds of the issue for acquisitions, and for "general corporate purposes."
At the moment, the company's fleet consists of 20 ships. It has signed a preliminary agreement to purchase a new tanker, which it anticipates will be delivered no later than next month.
Morgan Stanley is the book-running manager of the issue, with three Scandinavian financial firms acting as co-managers.
Fool contributor Eric Volkman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.