Huge!!!
DryShips Rallies As Ocean Rig Unit Plans $500M Stock Sale
Last update: 12/3/2010 9:49:46 AM
DOW JONES NEWSWIRES
DryShips Inc. (DRYS) said its Ocean Rig UDW Inc. subsidiary plans to offer $500 million of stock in a private placement, raising proceeds to finance the construction of ultra deepwater drillships.
Shares of DryShips were up 8.2% at $5.65 in recent trading. Still, the stock has declined about 2.8% this year.
The deal comes as the dry-bulk shipper and owner of offshore oil-drilling vessels has seen earnings rise of late on higher drilling revenue and improved margins. DryShips is expected to benefit from the economic recovery, but also faces an expected increase in industry-wide shipping capacity in coming years.
The offer will be made to institutional investors and Norwegian professional investors. DryShips will own 78% to 80% of Ocean Rig following the transaction.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
(END) Dow Jones Newswires
December 03, 2010 09:49 ET (14:49 GMT)
