e424b3
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-161961
PROSPECTUS SUPPLEMENT
(To Prospectus dated January 28, 2010)
Seanergy Maritime Holdings Corp.
20,833,333 Shares
Common Stock
     Our prospectus dated January 28, 2010 related to the offer and sale of up to 20,833,333 of shares of our common stock. In addition, we granted the underwriters an option to purchase 3,125,000 additional shares of common stock to cover over-allotments. On March 18, 2010, we received notice from Maxim Group LLC and Rodman & Renshaw, LLC, as representatives of the underwriters, of the exercise of the overallotment option to purchase 1,945,000 additional shares of our common stock. We are filing this prospectus supplement to update our prospectus dated January 28, 2010.
     On February 8, 2010, we announced that our Board of Directors determined to terminate the memorandum of agreement for the intended acquisition of a 2009-built Capesize vessel as described in our prospectus dated January 28, 2010. The purchase price we agreed to pay for this vessel reflected the above-market charter hire that we expected to receive from the charter currently in place. However, based on recent developments in the world economy, in particular the announcement by the Chinese government to restrict Chinese banks’ lending activities, our Board of Directors determined we would likely be unable to realize the full benefits from the purchase and be subjected to prolonged and undue market and credit risk given the vessel’s high price. We remain committed to using the net proceeds of the offering, which are currently held in an interest-bearing bank account, to expand our fleet and we are focusing our efforts on identifying vessel(s) with a view to maximizing benefits to the company. As a result, any references to the 2009-built Capesize vessel and its employment are hereby deleted from the prospectus. Instead, all references to the “Use of Proceeds” from the offering should state that we intend to use the proceeds of the offering, including from the exercise of the Underwriters’ overallotment option, to purchase one or more additional vessels to expand our fleet. If we have any proceeds remaining after the purchase of one or more vessels, we will use these amounts for general corporate purposes. If we are unable to identify suitable vessels for acquisition or if we identify suitable vessels but are unable to acquire them for any reason, we may continue to search for suitable vessels or use some or all of the proceeds for other general corporate purposes.
Joint Book-Running Managers
     
Maxim Group LLC   Rodman & Renshaw, LLC
Co-Manager
Chardan Capital Markets, LLC
This prospectus supplement is dated March 18, 2010.

 

 

     On March 4, 2010, we announced our operating results for the fourth quarter and the full year ended December 31, 2009.
Results of Operations for the Three Months Ended December 31, 2009
     Net revenues for the three month period ended December 31, 2009 decreased to $17.3 million from $28.3 million in the same quarter in 2008. This is mainly attributable to the lower market-imposed time charter rates earned during the three month period ended December 31, 2009 as compared to the same period in 2008. We operated a fleet of 11 vessels on average during the fourth quarter of 2009, earning a time charter equivalent, or TCE, rate of $17,331 as compared to an average of six vessels and a TCE rate of $50,652 during the fourth quarter of 2008.
     Operating income amounted to $0.8 million for the three months ended December 31, 2009, as compared to an operating loss of $34.0 million for the same quarter in 2008. Net loss was $3.2 million, or $0.10 per basic and diluted share, for the three months ended December 31, 2009, as compared to a net loss of $37.3 million, or $1.67 per basic and diluted share, for the same quarter in 2008, based on weighted average common shares outstanding of 33,255,170 and 22,341,857, respectively. The decrease in net loss of $34.1 million is mainly attributable to a vessel impairment loss of $4.5 million and a goodwill impairment loss of $44.8 million recorded in the fourth quarter of 2008. We did not incur any such impairment losses in the fourth quarter of 2009.
Results of Operations for the Year Ended December 31, 2009
     Net revenues for 2009 increased to $87.9 million as compared to $34.5 million in 2008, an increase of 155%. This increase is primarily due to the fact that we only operated for a portion of 2008 as we commenced our operations in August 2008. Furthermore, we added extra vessels in our fleet during 2009 when we acquired a controlling interest in Bulk Energy Transport (Holdings) Limited in August 2009. We operated a fleet of 7.9 vessels on average during 2009 as compared to 5.5 vessels in 2008. The effect on net revenues of this increase in the average number of vessels we operated was partially offset by the lower market-imposed time charter rates earned during 2009. The TCE rate for 2009 amounted to $32,909 as compared to $49,944 in 2008. The decrease in TCE reflects the new time charter contracts at prevailing lower market rates.
     Operating income amounted to $40.4 million as compared to an operating loss of $31.2 million for the year ended December 31, 2008.
     Net income for 2009 was $30.1 million, or $1.16 per basic share and $1.00 per diluted share, based on weighted average common shares outstanding of 25,882,967, basic, and 30,529,281, diluted, for 2009, as compared to a net loss of $32.0 million, or $1.21 per both basic and diluted share, based on weighted average common shares outstanding of 26,452,291 for both basic and diluted shares in 2008. The improvement in net income is mainly attributable to a vessel impairment loss of $4.5 million and a goodwill impairment loss of $44.8 million in 2008. We did not incur any such impairment losses in 2009.
     Our cash reserves as of December 31, 2009 were $63.6 million, reflecting $43.2 million in cash generated from operations.
Performance Indicators
     The figures shown below are non-GAAP statistical ratios used by management to measure performance of our vessels and are not included in financial statements prepared under US GAAP.

2

 

(In US dollars, except fleet data)
                                 
    Year Ended   Year Ended   Three Months   Three Months
    December 31,   December 31,   Ended   Ended
    2009   2008   December 31, 2009   December 31, 2008
     
Fleet Data:
                                
Average number of vessels (1)
     7.9       5.5       11       6.0  
Ownership days (2)
     2,895       686       1,012       552  
Available days (3)
     2,638       686       983       552  
Operating days (4)
     2,614       678       969       552  
Fleet utilization (5)
     90.3 %     98.8 %     95.8 %     100 %
Average Daily Results:
                                
TCE rate (6)
     32,909       49,944       17,331       50,652  
Vessel operating expenses (7)
     5,603       4,636       6,389       4,458  
Management fee (8)
     592       566       628       554  
Total vessel operating expenses (9)
     6,195       5,202       7,017       5,012  
 
(1)   Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company’s fleet during the relevant period divided by the number of calendar days in the relevant period.
 
(2)   Ownership days are the total number of days in a period during which the vessels in a fleet have been owned. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.
 
(3)   Available days are the number of ownership days less the aggregate number of days that vessels are off-hire due to major repairs, dry dockings or special or intermediate surveys. The shipping industry uses available days to measure the number of ownership days in a period during which vessels should be capable of generating revenues. During the year ended December 31, 2009, the Company incurred 257 off hire days for vessel scheduled dry docking. During the three months ended December 31, 2009, the Company incurred 29 off hire days for vessel scheduled dry docking.
 
(4)   Operating days are the number of available days in a period less the aggregate number of days that vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
 
(5)   Fleet utilization is the percentage of time that our vessels were generating revenue, and is determined by dividing operating days by ownership days for the relevant period.
 
(6)   Time charter equivalent or TCE rates are defined as our net revenues less voyage expenses during a period divided by the number of our operating days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and commissions.
(In thousands of US Dollars, except operating days and daily time charter equivalent rate)
                                 
                            Three Months
    Year Ended   Year Ended   Three Months   Ended
    December 31,   December 31,   Ended   December 31,
    2009   2008   December 31, 2009   2008
     
Net revenues from vessels
     87,897       34,453       17,289       28,331  
Voyage expenses
     (1,872 )     (591 )     (495 )     (371 )
Net operating revenues
     86,025       33,862       16,794       27,960  
 
                                
 
                                
Operating days
     2,614       678       969       552  
 
                                
Daily time charter equivalent rate
     32,909       49,944       17,331       50,652  

3

 

 
(7)   Average daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, are calculated by dividing vessel operating expenses by ownership days for the relevant time periods:
(In thousands of US Dollars, except ownership days and daily vessel operating expenses)
                                 
                            Three Months
            Year Ended   Three Months   Ended
    Year Ended   December 31,   Ended   December 31,
    December 31, 2009   2008   December 31, 2009   2008
     
 
                                
Operating expenses
     16,222       3,180       6,466       2,461  
Ownership days
     2,895       686       1,012       552  
 
                                
Daily vessel operating expenses
     5,603       4,636       6,389       4,458  
 
(8)   Daily management fees are calculated by dividing total management fees by ownership days for the relevant time period.
 
(9)   Total vessel operating expenses or TVOE is a measurement of total expenses associated with operating the vessels. TVOE is the sum of vessel operating expenses and management fees. Daily TVOE is calculated by dividing TVOE by fleet ownership days for the relevant time period.

4

 

Seanergy Maritime Holdings Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, 2009 and 2008
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
(Unaudited)
                 
    2009     2008  
ASSETS
                
Current assets:
                
Cash and cash equivalents
     63,607       27,543  
Accounts receivable trade, net
     495       —  
Due from related parties
     265       577  
Inventories
     1,126       872  
Prepaid insurance expenses
     623       574  
Prepaid expenses and other current assets — related parties
     58       248  
Insurance claims
     1,260       —  
Other current assets
     39       —  
 
            
Total current assets
     67,473       29,814  
 
            
Fixed assets:
                
Vessels, net
     444,820       345,622  
Office equipment, net
     20       9  
 
            
Total fixed assets
     444,840       345,631  
 
            
Other assets
                
Goodwill
     17,275       —  
Deferred charges
     8,684       2,757  
Other non-current assets
     180       —  
 
            
TOTAL ASSETS
     538,452       378,202  
 
            
LIABILITIES AND EQUITY
                
Current liabilities:
                
Current portion of long-term debt
     33,206       27,750  
Trade accounts and other payables
     990       674  
Due to underwriters
     19       419  
Accrued expenses
     1,719       541  
Accrued interest
     1,508       166  
Accrued charges on convertible promissory note due to shareholders
     —       420  
Financial instruments
     3,556       —  
Deferred revenue — related party
     894       3,029  
Deferred revenue
     246       —  
 
            
Total current liabilities
     42,138       32,999  
 
            
Long-term debt, net of current portion
     267,360       184,595  
Financial instruments
     1,550       —  
Below market acquired time charters
     585       —  
Convertible promissory note due to shareholders
     —       29,043  
 
            
Total liabilities
     311,633       246,637  
 
            
EQUITY
                
Seanergy shareholder’s equity
                
Common stock, $0.0001 par value; 200,000,000 and 89,000,000 authorized shares as at December 31, 2009 and 2008, respectively; 33,255,170 and 22,361,227 shares, issued and outstanding as at December 31, 2009 and 2008, respectively
     3       2  
Additional paid-in capital
     213,232       166,361  
Accumulated deficit
     (4,746 )     (34,798 )
 
            
Total Seanergy shareholders’ equity
     208,489       131,565  
 
            
Non controlling interest
     18,330       —  
 
            
Total equity
     226,819       131,565  
 
            
TOTAL LIABILITIES AND EQUITY
     538,452       378,202  
 
            

5

 

Seanergy Maritime Holdings Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
(Unaudited)
                                 
    Three months ended        
    December 31,     Year ended December 31,  
    2009     2008     2009     2008  
Revenues:
                                
Vessel revenue — related party
     13,791       29,058       83,903       35,333  
Vessel revenue
     4,023       —       6,340       —  
Commissions — related party
     (100 )     (727 )     (2,226 )     (880 )
Commissions — non related party
     (425 )     —       (120 )     —  
 
                        
Vessel revenue, net
     17,289       28,331       87,897       34,453  
Expenses:
                                
Direct voyage expenses
     (273 )     (8 )     (753 )     (151 )
Vessel operating expenses
     (6,466 )     (2,461 )     (16,222 )     (3,180 )
Voyage expenses — related party
     (222 )     (363 )     (1,119 )     (440 )
Management fees — related party
     (636 )     (306 )     (1,715 )     (388 )
 
                                
General and administration expenses
     (1,949 )     (1,306 )     (5,928 )     (2,161 )
General and administration expenses — related party
     (195 )     (109 )     (742 )     (109 )
Amortization of deferred dry-docking costs
     (648 )     —       (1,045 )     —  
Depreciation
     (6,097 )     (8,441 )     (26,812 )     (9,929 )
Goodwill impairment loss
     —       (44,795 )     —       (44,795 )
Vessels’ impairment loss
     —       (4,530 )     —       (4,530 )
Gain from acquisition
     —       —       6,813       —  
 
                        
Operating income (loss)
     803       (33,988 )     40,374       (31,230 )
 
                        
 
                                
Other income (expense), net:
                                
Interest and finance costs
     (2,370 )     (3,255 )     (7,230 )     (3,895 )
Interest and finance costs — shareholders
     —       (92 )     (386 )     (182 )
Interest income — money market funds
     66       104       430       3,361  
 
                                
Loss on interest rate swaps
     (164 )     —       (1,575 )     —  
Foreign currency exchange gains (losses), net
     36       (40 )     (44 )     (39 )
 
                        
Net Income (Loss)
     (1,629 )     (37,271 )     31,569       (31,985 )
 
                        
Less: Net Income Attributable to the Noncontrolling interest
     1,584       —       1,517       —  
 
                                
Net Income (Loss) Attributable to Seanergy Maritime Holdings
     (3,213 )     (37,271 )     30,052       (31,985 )
 
                        
 
                                
Net income (loss) per common share
                                
Basic
     (0.10 )     (1.67 )     1.16       (1.21 )
 
                        
Diluted
     (0.10 )     (1.67 )     1.00       (1.21 )
 
                        
 
                                
Weighted average common shares outstanding
                                
Basic
     33,255,170       22,341,857       25,882,967       26,452,291  
 
                        
Diluted
     33,255,170       22,341,857       30,529,281       26,452,291  
 
                        

6

 

Seanergy Maritime Holdings Corp. and Subsidiaries
Condensed Consolidated Statements of Shareholders’ Equity
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
(Unaudited)
                                                         
                            Retained     Total              
    Common stock     Additional     earnings/     Seanergy     Non        
    # of     Par     paid-in     (Accumulated     shareholders’     Controlling     Total  
    Shares     Value     capital     deficit)     equity     interest     equity  
Balance, January 1, 2008
     28,600,000       3       146,925       1,441       148,369       —       148,369  
 
                                          
Net (loss) for the year ended December 31, 2008
     —       —       —       (31,985 )     (31,985 )     —       (31,985 )
Dividends paid
     —       —       —       (4,254 )     (4,254 )     —       (4,254 )
Reclassification of common stock no longer subject to redemption
     (6,370,773 )     —       17,144       —       17,144       —       17,144  
Reversal of underwriter fees forfeited to redeeming shareholders
     —       —       1,433       —       1,433       —       1,433  
Liquidation and dissolution common stock exchange
     —       (1 )     1       —       —       —       —  
Warrants exercised
     132,000       —       858       —       858       —       858  
 
                                          
Balance, December 31, 2008
     22,361,227       2       166,361       (34,798 )     131,565       —       131,565  
 
                                          
Issuance of common stock to convert promissory note
     6,585,868       1       29,596       —       29,597       —       29,597  
Issuance of common stock due to earn-out
     4,308,075       —       17,275       —       17,275       —       17,275  
Gain from acquisition
     —       —       —       —       —       6,813       6,813  
Noncontrolling interest
     —       —       —       —       —       10,000       10,000  
Net income for the year ended December 31, 2009
     —       —       —       30,052       30,052       1,517       31,569  
 
                                          
Balance, December 31, 2009
     33,255,170       3       213,232       (4,746 )     208,489       18,330       226,819  
 
                                          

7

 

Seanergy Maritime Holdings Corp. and subsidiaries
Condensed Consolidated Statements of Cash Flows
For the years ended December 31, 2009 and 2008
(In thousands of US Dollars, except for share and per share data, unless otherwise stated)
(Unaudited)
                 
    2009     2008  
Cash flows from operating activities:
                
Net income (loss)
     31,569       (31,985 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                
Impairment of goodwill
     —       44,795  
Impairment of vessels
     —       4,530  
Depreciation
     26,812       9,929  
Amortization of deferred finance charges
     696       224  
Amortization of deferred Dry-docking costs
     1,045       —  
Deferred Dry-docking costs
     (7,119 )     —  
Change in fair value of financial instruments
     189       —  
Amortization of acquired time charters
     (125 )     —  
Gain on acquisition
     (6,813 )     —  
Changes in operating assets and liabilities:
                
(Increase) decrease in —
                
Due from related parties
     1,760       (577 )
Inventories
     1,222       (872 )
Trade accounts and other receivables
     (263 )     —  
Insurance claims
     (1,159 )     —  
Other current assets
     59       —  
Other non-current assets
     (180 )     —  
Prepaid insurance expenses
     719       (495 )
Prepaid expenses and other current assets — related parties
     190       (248 )
Trade accounts and other payables
     (3,299 )     86  
Due to underwriters
     (400 )     (3,555 )
Accrued expenses
     (885 )     541  
Accrued charges on convertible note due to shareholders
     670       132  
Premium amortization on convertible note due to shareholders
     (379 )     —  
Accrued interest
     1,176       166  
Deferred revenue — related party
     (2,523 )     3,029  
Deferred revenue
     246       —  
 
            
Net cash provided by operating activities
     43,208       25,700  
 
            
Cash flows from investing activities:
                
Acquisition of business, net of cash acquired
     36,374       (375,833 )
Funds placed in (used from) trust account from offerings
     —       232,923  
Additions to office furniture and equipment
     (21 )     (9 )
 
            
Net cash provided by (used in) investing activities
     36,353       (142,919 )
 
            
Cash flows from financing activities:
                
Redemption of common shares
     —       (63,705 )
Proceeds from warrants exercised
     —       858  
Proceeds from long term debt and revolving facility
     —       219,845  
Repayment of long term debt
     (54,878 )     (7,500 )
Dividends paid
     —       (4,254 )
Restricted cash
     1,381       —  
Noncontrolling interest contribution
     10,000       —  
Deferred finance charges
     —       (2,693 )
 
            
Net cash provided by (used in) financing activities
     (43,497 )     142,551  
 
            
Net increase in cash and cash equivalents
     36,064       25,332  
Cash and cash equivalents at beginning of period
     27,543       2,211  
 
            
Cash and cash equivalents at end of period
     63,607       27,543  
 
            

8