Nordic American plans stock sale

Nordic American plans stock sale Nordic American Tanker Shipping Ltd. Wednesday announced a new public offering of 3 million shares of common stock it plans to use for further fleet expansion and acquisitions.
   Despite a lagging spot market for bulk cargo and mounting global economic woes, the Bermuda-based owner of a dozen Suezmax oil tankers, has managed to thrive. In November, the firm reported third quarter net income of $42.7 million on revenue of $67.3 million, giving the firm a 63.4 percent profit margin during the quarter.
   Of the offering, Herbjorn Hansson, chairman and chief executive officer, said, “the present markets offer attractive opportunities to increase the company’s fleet further. Because of the financial turmoil internationally, ship values have been reduced. We believe that our past acquisitions have been accretive, that is, after acquisitions our dividend and earnings per share have been higher than under a scenario where such acquisitions had not taken place.'
   The stock sale, being managed by Morgan Stanley, is expected to close on Jan. 13, and based on Wednesday's New York Stock Exchange closing price of $35.49 per share, the sale could represent close to $100 million. NATS has also offered underwriters a 30-day option to purchase an additional 450,000 shares to cover overallotments, which could provide an additional $15 million to the firm, which prior to the stock offering reported a market capitalization of $1.22 billion.
   NAT officials said the new common shares would be offered 'for resale from time to time in negotiated transactions or otherwise.'
   On Monday, NAT announced the $56.7 million purchase of an additional Suezmax tanker, which with two newbuilds on order, will boost the firm's tanker fleet to 15 by April 2010.