M&A

17 November, 2009

UPDATE 1-DryShips offers $300 mln in notes, shares down

* Says to offer notes worth $300 mln

* To use net proceeds to acquire vessels

* Signs new deal on waiver terms for $117.5 mln debt

* Shares fall 5 pct

Nov 17 (Reuters) - Greek drybulk shipping and contract drilling company DryShips Inc (DRYS.O) said it is offering $300 million in notes to acquire vessels and increase working capital, sending its shares down 5 percent after market.

The company said the underwriter will also have an over-allotment option of $45 million in notes.

Deutsche Bank Securities is the sole book-running manager for the offering.

The drybulk carrier said it also intends to enter into a share lending agreement with Deutsche Bank AG, under which it will loan to Deutsche Bank AG shares of its common stock having a market value of about $150 million.

Separately, the company said it signed an agreement with Deutsche Schiffsbank on waiver terms for two facilities with an aggregate of $117.5 million of its outstanding debt. Earlier this month, DryShips reached an agreement with Commerzbank and West LB on waiver terms for $70 million of outstanding debt.

Shares of DryShips fell 35 cents to $6.70 in after-market trade. They closed at $7.05 Tuesday on Nasdaq. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Maju Samuel)

Source: http://www.reuters.com