market folly

Howard Marks' hedge fund firm Oaktree Capital has filed a 13D with the SEC regarding Star Bulk Carriers (SBLK).  Oaktree disclosed an 18.6% ownership stake in SBLK with 3,865,888 shares.

On May 1st, Oaktree and other purchasers entered into a purchase agreement and agreed to backstop an equity rights offering up to $75 million with a subscription price of $5.35. 

Oaktree also agreed that it would not acquire more than 40% of common shares without approval of the board.  On July 25th, the company announced successful completion of the rights offering.

The 13D also notes that the company has agreed to increase the size of the board by 2 directors.  The filing was required due to portfolio activity on July 25th.

Per Google Finance, Star Bulk Carriers is "an international company providing worldwide transportation of drybulk commodities through its vessel-owning subsidiaries for a broad range of customers of major and minor bulk cargoes including iron ore, coal, grain, cement and fertilizer."

We also just posted up Howard Marks' latest memo if you're interested in hearing his market thoughts.