Eneti unveils plans for public offering

4C Offshore | Tom Russell
By: 09/11/2021 Eneti
Eneti Inc. has announced that it intends to offer, issue and sell to the public $200 million of shares of its common stock, par value $0.01 per share, through an underwritten public offering.

The net proceeds of the offering are expected to be used for general corporate purposes, including the funding of the Company’s wind turbine installation vessel newbuilding program consisting of one contracted newbuild vessel, one optional newbuild vessel and one proposed Jones Act compliant newbuild vessel.

As part of the offering, Scorpio Holdings Limited, a related party of the company, has expressed an interest in purchasing common shares at the public offering price with a value of at least $30 million.

Citigroup, DNB Markets, BTIG and Nomura are acting as joint book-runners in the offering. Clarksons Platou Securities, Fearnley Securities and Kepler Cheuvreux are acting as co-managers in the offering.

The company’s common shares trade on the New York Stock Exchange under the symbol “NETI.”

Eneti Inc. (previously Scorpio Bulkers Inc.) announced on August 3, 2020, its intention to transition away from the business of dry bulk commodity transportation and towards marine-based renewable energy including investing in the next generation of wind turbine installation vessels.  

Additionally, Eneti signed binding agreements with counterparties in Japan to transfer the existing lease finance arrangements of the SBI Tango, SBI Echo, and SBI Hermes, Ultramax bulk carriers built in 2015, 2015, and 2016 respectively, and SBI Rumba and SBI Samba, Kamsarmax bulk carriers built in 2015, to affiliates of Scorpio Holdings Limited (SHL) for consideration of $16 million. This transaction was approved by the company’s independent directors in January 2021. The final vessel was delivered in July 2021, and marks the conclusion of the company’s exit from the dry bulk sector announced on December 20, 2020.

In August 2021 Eneti announced that one of its wholly owned direct subsidiaries had entered into a binding agreement with Marubeni Corporation, INCJ, Ltd. and Mitsui O.S.K., Lines Ltd. under which Eneti will acquire 100% of Atlantis Investorco Limited, the parent of Seajacks International Limited.