Double Hull Tankers Raising Cash (DHT)

Double Hull Tankers inc. (NYSE: DHT) has filed to sell up to 7 million shares of common stock via a secondary offering.  The company has also granted underwriters a 1.05 million share overallotment option.

The shipping giant has hired Merrill Lynch and UBS to act as joint book-runners for the offering, while Dahlman Rose & Co. was listed as co-manager.

Net proceeds of the offering for general corporate purposes, which as with the usual language includes vessel and business acquisitions, strategic alliances, debt reduction, capital expenditures and working capital.

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Based on today’s closing prices, this would represent close to $84million in gross proceeds before underwriting fees, which compares to a$358 million market cap.  Unfortunately, shares are down over 6% at $11.21 in after-hours trading.  The 52-week trading range is $9.32 to $18.79.

Jon C. Ogg
April 28, 2008