Hamilton, Norway, Sep 30, 2010 (Thomson Reuters ONE via COMTEX) -- Knightsbridge Tankers Limited Announces Pricing of Public Offering Knightsbridge Tankers Limited (the "Company" or "Knightsbridge") /quotes/comstock/15*!vlcc.f/quotes/nls/vlccf (VLCCF 18.81, -0.09, -0.48%) announced today the pricing of its previously announced underwritten public offering of 4,250,000common shares at a price of $19.00 per share.The common shares are being offered pursuant to the Company's effective shelf registration statement.The proceeds of the offering are expected to be used to repay indebtedness, fund a portion of the purchase price for a newbuilding Capesize drybulk carrier, the Golden Zhejiang that the Company has agreed to acquire from Golden Ocean Group Limited, or Golden Ocean, subject to certain conditions. The remainder of the net proceeds are expected to be used to fund future vessel acquisitions, for working capital and for general corporate purposes. The Company expects to close the offering of the common shares on October 5, 2010, subject to customary closing conditions.
As part of the vessel acquisition, the Company expects to issue to Golden Ocean 973,684 restricted common shares, for an aggregate value of approximately $18.5 million based on the price to public in the offering of $19.00 per share. The agreement to acquire the Golden Zhejiang is subject to conditions, including the completion of definitive documentation and customary closing conditions, the successful completion of the offering and the refinancing of the Company's amended credit facility with Nordea Bank Norge ASA, or Nordea, for which the Company has obtained a commitment letter from Nordea.
BofA Merrill Lynch is acting as the bookrunning manager and DnB NOR Markets and Nordea Markets are acting as co-managers for the offering. The Company has granted the underwriters a 30-day option to purchase up to 637,500 additional shares to cover overallotments.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The offering is being made by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus and prospectus supplement relating to the offering may be obtained from the offices of BofA Merrill Lynch at 4 World Financial Center, New York, New York 10080, Attention: Preliminary Prospectus Department or by email at dg.prospectus_requests@baml.com.
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