PRODUCT tanker and box shipowner Aries Maritime Transport is considering a deal that would transfer control to Greece’s GrandUnion. In a filing with the SEC yesterday, NASDAQ-listed Aries said the non-binding proposal calls for Aries to acquire three Capesize bulkers (Yiosonas, Nike and Grand Mirsinidi), valued at $36M per vessel. In return, GrandUnion would obtain 16M newly issued Aries shares and assume board control.
GrandUnion is controlled by Michael Zolotas and Nicholas Fistes. If the deal goes through, Fistes would be board chairman and Zolotas would be a board member and company president. Altogether, GrandUnion would hold four of the seven board seats and would also appoint a finance chief. The letter of intent has a 60-day exclusivity period and a $3M break-up fee to GrandUnion, and expires on 31 August if no definitive agreement is reached.
The proposal is contingent on receiving a commitment letter from a bank for a fully underwritten private issuance of $145M in 7% senior unsecured convertible notes due 2014. Proceeds would fund vessel acquisitions and partially repay indebtedness. The deal also hinges on Aries obtaining amendments to its senior credit facility.
Source: FairPlay
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