Hidden Benefit of DryShips Getting Waivers (DRYS)
DryShips Inc. (NASDAQ: DRYS) is seeing its shares surge on news that it has received waivers from lenders. We have been expecting this for some time, and fairly recent reports of a share sale made this only look more likely…
The drybulk and offshore oil services shipping company reached agreement with HSH Nordbank as agents on waiver terms for $654 million of the company’s outstanding debt under its credit facilities. This facility covers 23 of the company’s drybulk vessels.
This waiver and a recent possible share sale filing should negate part of those old going concern fears for one of its units. Back on March 30, 2009, we noted about the auditors giving a ‘going concern ‘ note to the company’s Ocean Rig ASA unit. It also recently completed a financing in April. We can’t say 100% that those are gone, but a possible capital raise and a waiver from lenders should negate the fears there.
DryShips has traded 27 million shares after being open a mere 45 minutes, and so far this is up 15% at $7.03. To show how volatile this one is, the 52-week trading range of $2.72 to $116.43 pretty much says it all.
Here is the most recent SEC Filing with that data on the terms allowed for a share sale, which looks like the company will be selling shares from time to time directly into the market by the placement agent.
Jon C. Ogg
May 15, 2009
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