Based on a recent SC 13G/A filing, ABN AMRO gets to collect on the dividend based on the 53m shares they own, which will not go to DRYS until the loan is paid off and shares returned. So DRYS will not have the ability to access the dividend cash until this occurs.
What does GE have up his sleeve to get the share price back up to over $1? ORIG/DRYS merger? I can't think of many other options that will excite the market, but it will help if the BDI continues to climb.
well jack@ss, he actually sold 28 million shares for $7 when the stock was at $8 and climbing. Now it is at $6.
These suckers aren't moving and won't move until he decouples these entities. I'm not sure what he has planned, but it must be something since he's dropped $80m into DRYS and another $10m into ORIG. Gonna be boring watching these two trade flat over the next few months though.
I guess you didn't know that those tankers are being sold off, so they won't be paying any dividends to DRYS shareholders.
The only reason that makes sense to repay the ORIG loan with their own shares is to reduce interest. I'm not sure why else they would start paying this down now. Anybody have any ideas?
On November 18, 2014, Ocean Rig's $120 million loan to its majority shareholder, DryShips Inc. ("DryShips"), was approved by a special committee of Ocean Rig's Board of Directors which received a fairness opinion from Global Hunter Securities, a division of Seaport Global Securities LLC, and the loan agreement was executed by both companies. This loan is for a period of 18 months, is unsecured and bears interest at LIBOR plus an average of approximately 10% for the first year and 12% for the following six months. Ocean Rig has the option to exchange the loan for Ocean Rig common shares owned by DryShips at a fixed price of $13.50 per share, provided the DryShips ABN AMRO $200 million secured bridge loan facility has been repaid in full. If such exchange occurs, the margin of the Ocean Rig $120 million loan to DryShips will be reduced from inception to LIBOR plus an average of approximately 6.6% for the first year and 8.25% for the following six months.
NOT. This will be a slow climb out of the cellar but next year this time DRYS will be in much better shape.
90% of the time they fail? I'm pretty sure you are just some JA spewing your opinion around. Reverse splits could go in either direction depending on the company that performs them. I was providing factual data about an RS that actually worked out. You also provided an example that worked out for the OCNF share holders but proved no point about an RS. #$%$
If I see improving market conditions and fundamentals, then yes. Plus, ORIG is still a huge part of this play. Otherwise, it is just a hold and wait.
Identiv, Inc. was in a similar position to DRYS last year and did a 1:10 RS on 5/27/14. Their stock went from .68 to 6.80 and then more than tripled over the next 3 months. It is now back down to the price when the split occurred, but it has not gone below that price.
If the BDI improves, DRYS pays off some debt then this thing could rocket after an RS with a much lower float. We will see.
An RS on a company with declining earnings and in a sub-par market with declining fundamentals equals more bad things to come. An RS on a company with improving business conditions, improving market conditions and a growing demand for their shares will equal very good things. Especially if people still consider buying DRYS shares to get a piece of ORIG in their investment.
Well an RS is usually only done when a company is NOT in good shape, but I agree that in this case it could be beneficial for the stock. I don't see a sell off happening after the RS if the market continues to improve. And with the much lower float, demand for this stock could improve which could help support the new price after the split. Plus it could invite some more institutional investments.
As we responded to the previous question, after taking into account the one-off repayment of the ABN bridge loan, we’re looking at a runway of anywhere from 12 to 18 months based on the current low market rates.
Everyone bitched when he bought the rigs and everyone bitched when he bought those tankers as well back in late 2011, but now both of those moves are turning out to be the savior of the company. Patience will pay off here. If the BDI course corrects and oil holds steady, we will be fine. I'm only hoping it does so b4 a reverse split has to be performed. But I think a RS could also help the company if the market conditions change. Who knows but I'm holding steady.
It appears they aren't a big fan of drybulk overall and not just drys.