Contact Information: Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. (New York) Tel. 212-661-7566 E-mail: dryships@capitallink.com
DryShips Inc. Announces Exercise of Over-Allotment Option by Underwriter and Closes Offering of $460 Million Convertible Senior Notes
| Source: DryShips Inc.
ATHENS, GREECE--(Marketwire - November 25, 2009) - 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 $400
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 $60 million aggregate principal
amount of convertible notes on the same terms on which the $400 million
convertible were sold to the underwriter. The Company also announced that
the closing of the convertible notes offering and the over-allotment option
took place simultaneously today. Accordingly, $460 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 $448 million. 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 26.1 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 Inc.
DryShips Inc., based in Greece, is an owner and operator of drybulk
carriers and offshore deep water drilling rigs that operate worldwide. As
of the day of this release, DryShips owns a fleet of 39 drybulk carriers
comprising 7 Capesize, 30 Panamax and 2 Supramax, with a combined
deadweight tonnage of over 3.4 million tons, 2 ultra deep water
semisubmersible drilling rigs and 4 ultra deep water newbuilding
drillships.
DryShips Inc.'s common stock is listed on the NASDAQ Global 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
Inc. 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 Inc. 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 Inc.'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 Inc. with the US Securities and Exchange Commission.