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Ultrapetrol selling $60m of its senior notes

After announcing its plans to sell$60 million of its convertible senior notes, Ultrapetrol Bahamas experienced a near 20 percent decline in its share value at market close in Monday’s trading session, feeling a direct impact from the news.

Ultrapetrol broke the news yesterday as the company said it would sell$60 million aggregate principal amount of its convertible senior notes 2017. the company expects to grant the initial purchasers of the notes an option to purchase up to an additional$10 million aggregate principal amount of the notes to cover overallotments.

The transaction is subject to approval by shareholders and the notes will be convertible into shares of the company’s common stock at any time prior to the close of business on the business day, immediately preceding the maturity date of the notes.

According to a statement released by Ultrapetrol, the offering will only be made to qualified institutional buyers and non-U.S. persons, and the securities to be sold may not be offered unless registered under the U.S. Securities Act.

The company didn’t have a profitable third quarter, recording a net income loss of$6.9 million for the three months ended September 30, 2010, a figure that grew from$4.1 million during the same period in 2009. That number was attributed to a$2 million income tax loss for unrealized foreign exchange rate gains and the exclusion of a$1.3 million realized net gain. Net income attributable to the company for the first nine months was$1.5 million, a 58 percent decrease from$3.6 million during the same period a year ago.

Its second quarter results revealed total revenues at$60.61 million, compared to$54.8 million in the corresponding period in 2009.

The board of directors for Ultrapetrol will hold the necessary shareholder meeting to obtain approval of the issuance of the common stock into which the notes are convertible, and has established a record date for the meeting of December 31.

Ultrapetrol serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market, with its extensiveand diverse fleet of vessels. These include river barges and push boats, platform supply vessels, tankers, oil-bulk-ore vessels and a capesize bulk carrier.

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