Paragon Shipping unveiled plans to raise almost $200 million through an initial public offering of shares in its recently established container ship unit Box Ships, Inc.
The Greek ship-owner will sell 10 million common shares priced at $15 to $17 per share on the New York Stock Exchange, according to a filing with the Securities and Exchange Commission.
Box Ships plans to use the estimated $147.8 million proceeds from the IPO to help pay for the acquisition of an initial fleet of six container vessels.
After the IPO, the company, which will trade under the symbol "TEU," will issue a further 1.5 million shares and borrow $130 million to fund the vessel acquisitions.
Following the IPO, Box Ships will acquire two of Paragon's container ships with a capacity of 3,400 20-foot equivalent units each.
Box Ships has also signed agreements to buy two 5,100-TEU ships, one 4,500-TEU vessel and one 6,500-TEU unit from third parties.
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