The New York-listed operator of 20suezmax tankers says it is looking to raise $65m by way of a fundraiser backedby Morgan Stanley, DNB Markets and Pareto Securities.

In a statement, NAT noted its chairmanand chief executive, Herbjorn Hansson, plans to purchase about $2.0m worth ofcommon shares on the same terms as other investors.

It also pointed out that participantswill be entitled to a dividend of $0.16 per share that was announced on 21October but payable on 11 December.

“The company also intends to grant theunderwriters a 30-day option to purchase additional common shares representing upto 15% of the offered shares,” it added.

NAT says proceeds will be used tofinance its investment in offshoot Nordic American Offshore (NAO), a company thatis looking to acquire platform-supply vessels.

“One objective of the NAT investment in NAO is to enable NAT to pay a higherdividend to NAT shareholders than otherwise would be the case,” the companycontinued.

According to a filing with securities regulators the tanker owner has agreedto purchase approximately $65m worth of common shares in NAO’s upcoming privateplacement.

If all goes according to plan the tanker operator will be left with a 26% stakein the offshore offshoot, which intends to establish an initial fleet of sixPSVs before year-end and list on the New York Stock Exchange in the firstquarter of 2014.

NAT noted one of its subsidiaries, Scandic American Shipping, will serve asmanager for NAO after the acquisition is sealed and will be “compensated inaccordance with industry standards”.

When news of NAT’s offshore foray first made headlines, industry observersnote it had intended to invest roughly $50m in NAO’s private placement inexchange for about 15 to 20% of the new company’s equity.

As we reported, NAO plans to purchasethe 4,200-dwt sisters BlueProtector, Blue Guardian, Blue Thunder and Blue Power (all built 2013), as wellas the Blue Prosper and Blue Fighter (both built 2012) at a cost of around NOK272.5m ($45m) a piece.

The company intendsto finance the transaction with a combination of debt and equity. At last checkit said 80% of the NOK 1.635bn ($270m) acquisition would be funded by theprivate placement, which will likely take place in Norway.

Shares of NATplummeted 8.90% before bottoming out at around $8.09 in afte hours trading asinvestors digested today’s development, which represents what will be thecompany’s second follow-on equity offering in less than 12 months.