Box Ships, an Athens-based container ship charter owner, raised $132 million from an initial public offering but its shares slipped on their NYSE debut April 14.
The company, an offshoot of NYSE-listed dry bulk shipowner Paragon Shipping, sold 11 million shares at $12 each, one million more than expected but priced at $3 below the lower end of the targeted $15-$17 price range.
Box Ships said it will borrow $26.1 million via an unsecured credit facility backed by Paragon Shipping to plug the shortfall.
The shares fell to $11.38 in early trading on the NYSE.
Box Ships plans to use the proceeds from the IPO and the loan to help fund the acquisition of an initial fleet of six container ships.
The company has agreed to buy three vessels owned by Paragon Shipping and a fourth ship from a private firm controlled by Paragon chief executive Michael Bodouroglou.
It is expected to acquire two further ships from third parties.
-- Contact Bruce Barnard at email@example.com.