The Radziwill group is continuing to stockpile capital for low-cycle buys in dry bulk with the launch of a $120m private placement in the US. The campaign by debut vehicle GoodBulk is just the latest in a series as owners seek to raise capital for counter-cyclical plays in the long-distressed but improving sector. Entities connected with John Michael Radziwill’s C Transport Maritime (CTM) have been stalking dry bulk assets since last summer.

TradeWinds reported in October that CTM had made a $125m run at New York-listed Genco Shipping & Trading only to see the target recapitalised by its top insider shareholders.

The Pareto-led private placement shows Radziwill has not given up. This time he proposes to sell five capesizes and one ultramax from his affiliated Carras Ltd to GoodBulk for $97.5m, while pursuing more acquisitions and an initial public offering within 12 months. The seller is to receive $80m in cash from GoodBulk on completion of the offering and 1.5 million shares in the new entity. GoodBulk would use $18.5m of the proceeds for further secondhand buys, and $4m for working capital, according to a prospectus circulated in connection with the effort.

The capesizes include the 180,700-dwt Nautical Dream (built 2013), 182,000-dwt Aquavictory (built 2010) and 171,000-dwt Acquabeauty, Aquacharm and Aquajoy (all built 2003). The ultramax is the 61,400-dwt Aquapride (built 2012). Three independent brokers valued the fleet at an average of $99.4m, according to GoodBulk.

Aside from the targeted fleet, GoodBulk has an existing complement of three ships in the water. Its capesizes are the 182,000-dwt Aquamarine (built 2009) and 177,000-dwt Aquadonna (built 2005). GoodBulk also has the 55,000-dwt supramax Admiral Schmidt (built 2007), which it acquired in February from a third party for $9.8m.

The Aquamarine was contributed by Carras as “equity in kind” with an acquisition price of $18.5m, while Aquadonna was acquired from a third party for $12.5m as part of the original equity financing. They all were acquired after an initial GoodBulk capital raise in December, documents show.

A company related to investor Lantern Asset Management “has indicated an interest to participate in the deal” for $10m, while CTM employees and Radziwill are in for $750,000 each, the prospectus states.

GoodBulk is targeting bulkers between the supramax and capesize classes aged five to 15 years, “currently believed to offer the best risk/reward profile”. GoodBulk promises an all-in breakeven of $9,000 per day for its capesizes and low leverage below 50% loan to value (LTV). CTM would provide technical and commercial management, building on the 100 vessels it currently has under management. The completed deal would make GoodBulk the world’s eighth-largest public capesize owner with seven — trailing only Golden Ocean, Bocimar, Diana Shipping, Star Bulk Carriers, Navios Maritime, Genco Shipping & Trading.

GoodBulk holds a $60m amortising term loan with five-year tenor at 325 basis points over the London interbank offered rate (Libor). The lender is not identified. The company hopes to complete its investor book next week.