DryShips Takes to the Road

DryShips Takes to the RoadWe are hearing good things about the DryShips roadshow currently underway on the West Coast. There is vigorous demand for dry bulk deals from the US investor community, and we expect the successful execution of this transaction to spawn more deals throughout 2005. As for pricing, look for a valuation multiple of 4-5x EBITDA – about where PacBasin is trading. Interestingly, we have not heard much talk of net asset value with this deal, but clearly there will be a premium. Unlike tankers, dry bulkers are driven more off cash flow because their ships have longer lives that generally extend beyond their book value depreciation schedule.
We are hearing good things about the DryShips roadshow currently underway on the West Coast. There is vigorous demand for dry bulk deals from the US investor community, and we expect the successful execution of this transaction to spawn more deals throughout 2005. As for pricing, look for a valuation multiple of 4-5x EBITDA – about where PacBasin is trading. Interestingly, we have not heard much talk of net asset value with this deal, but clearly there will be a premium. Unlike tankers, dry bulkers are driven more off cash flow because their ships have longer lives that generally extend beyond their book value depreciation schedule.

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