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Solstad Offshore ASA announces plan for refinancing with Aker ASA

07.06 2016 07:04

Solstad Offshore ASA (‘Solstad’) has together with Aker ASA (‘Aker’), and with indicative support from its lending banks and bondholders, developed a financing plan to strengthen Solstad’s balance sheet.

Aker will inject NOK 250 million in new equity and provide NOK 250 million in the form of a subordinated convertible bond, with maturity in 2021, which can be converted into new shares in Solstad or in a subsidiary of Solstad. The other shareholders in Solstad will be invited to participate in a subsequent offering of new equity of up to NOK 75 million, in which the Solstad family (comprising Solstad Invest AS, Soff Holding AS and Ivan II AS) has committed to participate with its pro rata share. Aker will have an economic interest of approximately 47 per cent in Solstad, subsequent to the repair issue.

“We are pleased to add Solstad Offshore to our portfolio, in line with our strategy to expand our oil and gas-related investments,” said Aker President and CEO Øyvind Eriksen. “Solstad has a long and proud history as a family-owned business with a solid operational track record, attractive fleet and global network. Aker believes the offshore service vessel segment offers attractive opportunities and we have substantial experience in assisting companies through deep market downturns. This refinancing plan will shore up Solstad’s financial robustness to withstand the challenging market, and position the company to participate in the consolidation of the fragmented offshore service vessel market.”

The Aker equity issue, the issue of the Aker convertible bond and the subsequent offering will be subject to the approval of an Extraordinary General Assembly in Solstad, expected to be held in July 2016.

“The combination of Solstad’s operational experience, high quality fleet and global network together with Aker’s industrial expertise, business development focus and financial strength will provide a powerful platform for further development of the Company,” said Lars Peder Solstad, CEO of Solstad.

Further details of the transactions are provided in Solstad’s stock exchange notice published today.

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For further information, please contact:

Investors:
Marianne Stigset, Head of Investor Relations
Phone: +47 24 13 00 66
Mobile: +47 41 18 84 82

Media:
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 907 84 878