New York-listed TEN on Thursday announced plans to sell shares in a public offering backed by Morgan Stanley, UBS and Wells Fargo Securities.
In a statement it noted affiliates of Tsakos Holdings Foundation, the company’s largest shareholder, intend to purchase 500,000 shares.
The Greek operator also indicated the underwriters will have a 30-day option to buy up to an additional 15% of the total shares sold in the public offering.
“The company plans to use the net proceeds of the offering to finance the growth and modernization of its fleet, and for general corporate purposes,” it added.
TEN recently raised $50m from the sale of preferred shares and, as of 30 January, has sold roughly $15m worth of common shares under anat-the-market sales programme hatched late last year, regulatory filings show.
Shares of TEN, which trade under the ticker “TNP”, plummeted 10.43% to $6.70 in after hours trading. Equity analysts contacted by TradeWinds say this isn’t a surprise as follow-on fundraisers typically spark concerns about dilution.
