The Monaco-based operator’s NewYork-listed stock sank 7.27% to $16.20, which may not come as a surprise sincefollow-on equity offerings often spook investors who are concerned aboutdilution.
The crash followed a filing in whichGasLog outlined plans to fund a portion of the $468m purchase with proceedsfrom a public offering of 8.4 million shares and private placement in which itplans to sell $30m worth of stock to directors, officers and a majorshareholder.
If the company offloaded shares atlevels seen after the close the follow-on fundraiser and the private placementgoes according to plan the operator could end up with more than $170m to applyto thepurchase of vessels it intends to buy and charter-back to an affiliate ofBG Group.
As we reported earlier this evening GasLog is also sitting on a $325.5m credit facility and bridge loan backed bythe London branch of Citibank but told investors itmay not need borrowings fromthe latter if efforts to secure “alternative” sources of funding bear fruit.
