TEN, a leading diversified crude, product and LNG tanker operator, announced that it has entered into a Share Purchase Agreement with a leading maritime institutional investor for a private placement of 3,500,000 zero coupon Series G Redeemable Convertible Perpetual Preferred Shares, at a price of $10.00 per share.
The Series G Preferred Shares will participate on an as-converted basis in any dividends declared and paid on TEN’s common shares and will be convertible at any time on a three and one-third-for-one basis into TEN common shares. Within the first quarter of 2021, any outstanding Series G Preferred Shares will, subject to certain limitations, be mandatorily exchanged for non-convertible perpetual preferred shares with a 7.50% coupon to be issued by a vessel-owning subsidiary of TEN.
The net proceeds, after deducting estimated fees and expenses, are expected to be approximately $34.1million. The Company expects to use the net proceeds for general corporate purposes.
The transaction is subject to customary closing conditions and is expected to close in September 2019.
The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.