Research Desk Line-up: Teekay LNG Partners Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 14, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for DryShips, Inc. (NASDAQ: DRYS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=DRYS. The Company, a diversified owner of cargo vessels, announced on August 11, 2017, that the audit committee of its Board of Directors has approved a binding term sheet, pursuant to which DryShips will sell its common shares to entities affiliated with the Chairman and CEO, George Economou, for about $100 million consideration at a price of $2.75 per share. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Shipping industry. Pro-TD has currently selected Teekay LNG Partners L.P. (NYSE: TGP) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Teekay LNG Partners when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DRYS; also brushing on TGP. Go directly to your stock of interest and access today's free coverage at:

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The Announcement

Pursuant to the Term Sheet, the Audit Committee has approved a subsequent rights offering that would enable DryShips' shareholders to purchase their pro-rata portion of up to $100 million of the Company's common shares at a price of $2.75 per share. Under terms of the announcement, the Company stated that Mr. Economou would not exercise his subscription rights in the Rights offering or amend the terms thereof. The Term Sheet also obligates the parties to use their best efforts to negotiate definitive documentation and execute the transaction, as soon as practicable. The consideration for the Company's shares in the Private Placement will be:

  1. The acquisition of 100% of the issued and outstanding equity interests of Shipping Pool Investors, Inc., which holds a 49% equity interest in Heidmar Holdings, LLC, a global tank operator;
  2. The termination of the participation rights set forth in the Deed of Participation dated May 23, 2017, by and between the Company and Mountain Investment Inc., an entity affiliated with Mr. Economou;
  3. The repayment of $27 million under the Company's unsecured credit facility, as amended with Sierra. The Company will also not receive any cash proceeds from the Private Placement.

The Stock Purchase Agreement Termination

DryShips reported on August 11, 2017, that in connection with the transactions announced, it has terminated the common stock purchase agreement dated April 03, 2017, by and between Kalani Investments Limited and the Company. Mr. Economou agreed to refrain from re-selling for a six-month period any of the Company's common shares to be acquired by him in the transaction. DryShips has agreed not to conduct any equity offerings until after December 31, 2017, without the prior approval of the majority of its unaffiliated shareholders.

The Reverse Stock Split

On July 18, 2017, DryShips announced that its Board of Directors had determined to effectuate a 1-for-7 reverse stock split of the Company's issued common shares. Post the announcement, and the reverse stock split turning effective, every seven shares of the Company's issued common stock would be automatically combined into one share of common stock. Affecting the reverse stock split, the number of outstanding common shares was about 5.2 million shares from the initial 36.30 million shares.

DryShips' portfolio lies primarily in the ocean going cargo vessels that operate worldwide. The Company owns a fleet of over 22 dry-bulk vessels, 1 crude carrier, 3 tankers, and 4 large Gas carriers, where 3 of them are expected to be delivered in Q4 2017, consecutively, every month. Post the reverse stock split, according to July 21 announcement, the Company announced that it has total cash and cash equivalents of about $58.6 million, the book value of vessels, including advances of about $652.6 million and net debt outstanding balance of about $237.5 million.

Last Close Stock Review

At the close of trading session on Friday, August 11, 2017, DryShips' stock price soared 51.22% to end the day at $3.10. A total volume of 52.53 million shares were exchanged during the session, which was above the 3-month average volume of 5.96 million shares. The Company's shares have a dividend yield of 2201.94%. At Friday's closing price, the stock's net capitalization stands at $51.40 million.

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SOURCE: Pro-Trader Daily