A secondary offering by Bermuda-based Nordic American Tanker Shipping Ltd. of 3.5 million common shares was priced at $49.50 per share, meaning the company could raise $170 million from the offering.

The company has also granted the underwriters an option to purchase up to an additional 525,000 common shares to cover any over-allotments, exercisable within 30 days.

Nordic American expects to close the sale of the common shares on March 8.

The company will use net proceeds of this offering to repay any amounts borrowed under its senior secured credit facility to finance the acquisition of two additional Suezmax tankers, and the remaining balance of the aggregate purchase price of the two vessels.

The proceeds will also be used for general corporate purposes, including repaying future indebtedness and any future vessel acquisitions. Nordic American expects to take delivery of the two additional Suezmax tankers later this month.