SOURCE: DryShips Inc.

DryShips Inc.

April 27, 2010 16:05 ET

DryShips Inc. Announces Exercise of Over-Allotment Option by Underwriter and Closes Offering of $240 Million Convertible Senior Notes

ATHENS, GREECE--(Marketwire - April 27, 2010) -  DryShips Inc. (NASDAQ: DRYS) (the "Company" or "Dryships"), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, today announced that in connection with its previously-announced offering of $220 million aggregate principal amount of convertible senior notes due 2014, the underwriter has exercised in full its over-allotment option granted by the Company and has purchased an additional $20 million aggregate principal amount of convertible notes on the same terms on which the $220 million convertible were sold to the underwriter. The convertible notes were offered as additional notes under an indenture, as supplemented by a supplemental indenture, pursuant to which the Company issued $460,000,000 aggregate principal amount of convertible senior notes on November 25, 2009. The Company also announced that the closing of the convertible notes offering and the over-allotment option took place simultaneously today. Accordingly, $240 million in aggregate principal amount of convertible notes have been sold by the Company to the underwriter, resulting in aggregate net proceeds to the Company of approximately $241 million which includes $5.06 million in accrued interest from November 25, 2009. Deutsche Bank Securities Inc. acted as the sole book-running manager for the offering.

Concurrently with the offering of the convertible notes, the Company delivered 10 million shares of its common stock to Deutsche Bank AG, London Branch ("Deutsche Bank AG") pursuant to a share lending agreement. Deutsche Bank AG or its affiliates intend to sell shares of the Company's common stock that they are entitled to borrow from the Company under the share lending agreement.

These shares were offered in an underwritten offering registered under the Securities Act of 1933, as amended, pursuant to the Company's existing shelf registration statement in order to facilitate hedging transactions undertaken by the purchasers of the convertible notes. The Company did not receive any of the proceeds from this sale of common stock but received a nominal lending fee from Deutsche Bank AG under the share lending agreement.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy the convertible notes, common stock or any other securities, nor will there be any sale of convertible notes, common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The convertible notes and the common stock are being offered only by means of a prospectus, forming a part of the Company's shelf registration statement, related prospectus supplements and other related documents. You may obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission website at www.sec.gov. Alternatively, copies may be obtained from Deutsche Bank Securities Inc., Attention: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311 or at 800-503-4611. Before you invest, you should read the prospectus supplements and accompanying base prospectus along with other documents that the Company has filed with the Securities and Exchange Commission for more complete information about the Company and these offerings.

About DryShips

DryShips is an owner and operator of drybulk carriers and offshore deep water drilling units that operate worldwide. As of the day of this release, DryShips owns a fleet of 39 drybulk carriers (including newbuildings) comprising seven Capesize, 30 Panamax and two Supramax, with a combined deadweight tonnage of over 3.5 million tons, two ultra deep water semisubmersible drilling rigs and four ultra deep water newbuilding drillships.

DryShips's common stock is listed on the NASDAQ Global Select Market where it trades under the symbol "DRYS".

Visit our website at www.dryships.com

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although DryShips believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, DryShips cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in DryShips's operating expenses, including bunker prices, drydocking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by DryShips with the US Securities and Exchange Commission.

Contact Information

  • Investor Relations / Media:

    Nicolas Bornozis
    Capital Link, Inc. (New York)
    Tel. 212-661-7566
    E-mail: dryships@capitallink.com