Michael Weinstock’s Monarch Alternative Capital Ups Activist Stake in This Stock

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Last week, Star Bulk Carriers Corp. (NASDAQ:SBLK) announced that it closed its public offering of around 49.0 million common shares. The shares were offered at a price of $5.00 per share. Four of the company’s significant shareholders, acquired a total of 37.25 million of the common shares, according to a news release. Those shareholders are Howard Marks’ Oaktree Capital Management, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co., Monarch Alternative Capital, and lastly, an entity owned and controlled by affiliates of the family of the company’s Chief Executive Officer, Petros Pappas (“Pappas Shareholders), and his family.

For the nine months ended September 30, 2014, Star Bulk Carriers Corp. (NASDAQ:SBLK) reported a net loss of around $3.7 billion vs. net income of $1.8 billion during the same period in 2013. Per share net loss was $0.08, compared to earnings per share of $0.19 in 2013. Total revenue was $81.73 million, compared to $53.55 million in 2013.

In August 2014, Star Bulk Carriers Corp. (NASDAQ:SBLK) announced that it entered into agreements with Excel Maritime Carriers Ltd. to acquire 34 operating vessels for an aggregate of 29.92 million shares of the company’s common stock, and $288.39 million in cash. Under the agreements, Star Bulk was set to acquire 34 secondhand dry bulk carriers in a series of closings, which are expected to occur on a vessel‐by‐vessel basis, according to a news release.

Last week, Oaktree Capital Management, led by Howard Marks, reported vastly increasing its stake in Star Bulk Carriers Corp (NASDAQ:SBLK), by more than 30.9 million shares, or 60%. The fund now owns 82.1 million common shares, representing 51.9% of the company’s outstanding stock.

During the third quarter, Adams Hill Capital, led by Andrew Schwartz, and Steve Cohen’s Point72 Asset Management added Star Bulk Carriers Corp (NASDAQ:SBLK) to their equity portfolios. Adams Hill Capital disclosed ownership of 860,500 shares of the company, while Point72 Asset Management reported holding 194,100 shares of the company. Another investor, Renaissance Technologies, managed by Jim Simons, revealed owning 107,384 Star Bulk Carriers shares, which represented a more than 50% decrease from the previous quarter.

Disclosure: none

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