Tacoma Boat $20-Million Debentures To Finance Expansion Program

Tacoma Boatbuilding Co., Tacoma, Wash., announced it is offering $20 million of 10% percent convertible subordinated debentures due 2001 through an underwriting group managed by Bear, Stearns & Co.

The debentures are convertible into Tacoma Boatbuilding common stock at $20% per share.

Proceeds from the sale will be used for facility expansion, the repayment of debt, and for working capital purposes. Of this amount, approximately $8 million will be used to acquire a floating drydock and approximately $5 million will be used to expand one of the company's shipyards and its machine shop. This facility expansion is intended to permit the company to construct larger ships and offshore oil drilling rigs, to increase ship repair work capacity, and reduce use of subcontracted facilities.

The company is engaged in the design, construction and repair of marine vessels at three shipyards in Tacoma. The company currently is constructing four patrol chasers for a foreign government, four medium endurance cutters for the U.S. Coast Guard, and 12 ocean surveillance craft for the U.S. Navy.

For the private sector, Tacoma Boat is doing overhauls of the Alaska State ferry Taku and the Washington State ferry Klickitat, is constructing three petroleum barges, and has recently received a contract to build a tuna seiner for a foreign buyer.

The company also designs and constructs offshore supply boats, semisubmersible oil drilling rigs, and large commercial fishing vessels.

Maritime Reporter Magazine, page 38,  Aug 15, 1981 M. Lee Rice

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.