After DryShips (Nasdaq:DRYS) raised the size of its offering for senior notes to $220 million, 47 percent more than before, the price of the stock plummeted.
Selling price for the notes will be 101 percent of their face value plus $4.64 million in accrued interest, say DryShips.
The initial conversion price will be $7.19 a share with an interest rate of 5 percent.
DryShips said the capital will be used to acquire more ships and general purposes of the company.
Some watching the company also believe they could use the capital to pay down some of its bank debt if they can't extend the wavers.
Since the middle of 2008 the share price of DryShips has plunged about 90 percent.
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