Monaco-based Eneti Inc. announced Tuesday that it will issue and sell to the public $200 million of shares of its common stock to raise funding for its wind turbine installation vessel construction program – including a proposed Jones Act-compliant WTIV for the emerging U.S. offshore wind market.
In a press release the company said the stock offering will support “wind turbine installation vessel newbuilding program consisting of one contracted newbuilding vessel, one optional newbuilding vessel and one proposed Jones Act compliant newbuilding vessel. As part of the offering, Scorpio Holdings Limited, a related party of the Company, has expressed an interest to purchase Common Shares at the public offering price with a value of at least $30 million.”
In an update issued Friday, Eneti said it has priced its public offering of 19,444,444 shares of its common stock, “par value $0.01 per share (the “Common Shares”), at $9.00 per share. The Company has granted the underwriters a 30-day option to purchase up to an additional 2,916,667 Common Shares.
“The Offering will result in gross proceeds to the Company of approximately $175.0 million (or approximately $201.2 million if the underwriters’ option to purchase additional Common Shares is exercised in full) prior to deducting underwriting discounts, commissions and other offering expenses.
“As part of the Offering, Scorpio Holdings Limited, a related party of the Company, has agreed to purchase 3,666,666 Common Shares at the public offering price. In addition, Robert Bugbee (the Company’s President) and a non-executive director have agreed to purchase 222,222 and 11,111 Common Shares, respectively, at the public offering price.”
The offering is expected to close on November 15, 2021.
In May 2021 Eneti officials said they hope to follow up a contract for a $330 million WTIV newbuild in South Korea for the Asian and European wind markets with plans for a U.S.-flag installation vessel.
“We believe it to be one of the most exciting renewable energy markets on the planet,” said Eneti managing director David Morant during a May 13 conference call with reporters. “We are very focused on the U.S…and in advanced discussions with U.S. shipyards.”
Formerly Scorpio Bulkers, the shipping company announced in August 2020 it was beginning a transition from the dry bulk sector into renewable energy and made its name change in February. Company co-founder and chairman Emanuele A. Lauro said they are following the global trend toward wind power – and bigger, more powerful turbines to be built farther offshore.
For the public offering Citigroup, DNB Markets, BTIG and Nomura are acting as joint book-runners. Clarksons Platou Securities, Fearnley Securities and Kepler Cheuvreux are acting as co-managers in the offering.
Kepler Cheuvreux is not a broker-dealer registered with the U.S. Securities and Exchange Commission and thus cannot “make sales of any shares in the United States or to U.S. persons except in compliance with applicable U.S. laws and regulations,” the Eneti announcement noted.
