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Baltic Trading Limited (BALT) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Baltic Trading Limited (BALT) (NYSE:BALT) is a dry bulk shipping company formed to own and use dry bulk shipping vessels. The company uses the spot market to maximize cash flow. The company contracted to purchase six vessels for approximately $284.2 million. [1]
In 2009, 4.7 billion tons of dry cargo was transported by sea, which is 60% of total trade by sea. Major dry bulk items include coal, iron ore, and grains. From 2000-2009, the dry bulk trade grew on average 3.7% per year. [1]
The company faces interest rate risks due to the fact that the industry is capital intensive. Baltic has entered into agreements for a revolving credit facility, thus increasing interest rates impacts Baltic's future earnings negatively. [1]
The company's initial public offering of stock was filed on 14 October 2009 and traded on the NYSE exchange on 9 March 2010. The proposed offer price range is $14-$16 and traded on the low end at $14. The company offered 16.3 million shares and raised $228 million. The primary source of initial capital is from Genco of $75 million. On 25 February 2010, the company entered a commitment with Nordea Bank Finland plc for a $100 million senior secured revolving credit facility. [1]
The company was incorporated on 6 October 2009 and from inception through 31 December 2009 it incurred a net loss of $15,820. [1]
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