StealthGas Inc. (GASS) on Tuesday announced an underwritten public offering of 8 million shares of its common stock pursuant to the company's effective shelf registration statement filed with the Securities and Exchange Commission.
An entity controlled by the family of the company's President and Chief Executive Officer has indicated its intention to purchase about 5% of the shares offered in the offering, StealthGas noted.
The company also plans to grant the underwriters a 30-day option to purchase up to 1.2 million additional shares of its common stock.
The company said it plans to use a portion of the net proceeds of the offering to partially fund the acquisition of five vessels, including three secondhand LPG carriers and two newbuilding LPG carriers, which are scheduled for delivery in May 2013 in the case of the three secondhand LPG carriers, and during the first half of 2014 in the case of the two newbuilding LPG carriers.
The company plans to use the remaining net proceeds of the offering for capital expenditures, including vessel acquisitions, and for other general corporate purposes.
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