Nordic American Tanker (NAT) Announces 11M Share Common Stock Offering

September 26, 2016 4:07 PM EDT

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Nordic American Tankers Limited (NYSE: NAT) announced an underwritten public offering of 11,000,000 common shares pursuant to the Company's effective shelf registration statement. At the Company’s request, the underwriters have reserved for sale an aggregate of 534,000 common shares to all the members of the Company’s board of directors, certain members of the Company’s management and all NAT advisors. The 534,000 common shares include approximately 100,000 shares to be purchased by the Company’s Chairman and Chief Executive Officer and 400,000 shares to be purchased by the Company’s Vice Chairman. Furthermore, during the period August 17 – 22, 2016, the Company’s Chairman and Chief Executive Officer purchased 210,000 common shares of the Company – in total worth $2.3 million at the time. The Company also intends to grant the underwriters a 30-day option to purchase up to an additional 1,650,000 common shares.

The Company intends to use the net proceeds of this offering primarily to finance the expansion of its fleet and for general corporate purposes. Immediately following the offering, the Company may use the proceeds of this offering to repay borrowings under its revolving credit facility pending application towards other uses.

The common shares purchased by the underwriters are expected to be offered for resale from time to time in negotiated transactions or otherwise, at market prices on the New York Stock Exchange prevailing at the time of sale, at prices related to such prevailing market prices or otherwise. On September 23, 2016, the closing price of the Company's common shares on the New York Stock Exchange was $10.85 per share.

Morgan Stanley & Co. LLC is acting as the bookrunning manager for the offering and DNB Markets, Inc. and Skandinaviska Enskilda Banken AB (publ) are acting as co-managers of the offering.

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