Ardmore Shipping Corporation (Who?) to Sell Baby Bonds

Ardmore Shipping Corp (NASDAQ:ASC) is selling some baby bonds which will have a maturity date in 2023.

We have never heard of the company (they have been around since 2010) but it appears they are an owner of 28 vessels which are primarily chemical carriers.  The company appears to have around $200 million in annual revenue, but are unprofitable (on a net income basis).  They appear to have a tiny bit of positive cash flow (adding depreciation to net income), but they pay NO common share dividend which is usually a warning sign of the quality of a shipping issue.

This issue will be junk (and pretty junky) I think and we would have no interest in the issue–but maybe it will work for someone.  I would expect a high coupon on the issue–we shall see.

The preliminary prospectus can be found here.


2 thoughts on “Ardmore Shipping Corporation (Who?) to Sell Baby Bonds”

  1. Update:
    Ardmore Shipping Corporation Announces Decision Not to Pursue Public Offering of Senior Notes

    PR Newswire PR NewswireNovember 19, 2018
    HAMILTON, Bermuda, Nov. 19, 2018 /PRNewswire/ — Ardmore Shipping Corporation (ASC) (“Ardmore” or the “Company”) today announced that it has decided not to pursue the previously announced public offering of senior unsecured notes at this time due to capital market conditions.

    This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein.

    About Ardmore Shipping Corporation

    Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, with its modern, fuel-efficient fleet of mid-size product and chemical tankers. Ardmore’s current fleet consists of 28 vessels, all of which are in operation.

    Ardmore’s core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the Company grows. Ardmore provides its services to customers through voyage charters, commercial pools, and time charters, and enjoys close working relationships with key commercial and technical management partners.
    Investor Relations Enquiries:

    The IGB Group
    Mr. Leon Berman
    Tel: 212-477-8438
    Fax: 212-477-8636


    Mr. Bryan Degnan
    The IGB Group
    Tel: 646-673-9701

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