Frontline 2012 Ltd has completed a private placement of 56,000,000 new ordinary shares of USD 2.00 par value at a subscription price of USD 3.75, raising USD 210 million in gross proceeds to the Company (the Private Placement).
Frontline 2012 has concluded an agreement to acquire a total of 16 firm newbuilding contracts and eight fixed price optional contracts. These newbuilding contracts are within the crude and product markets and are arranged, financed and entered into by the Company’s major shareholder Hemen Holding, with a total contract value of USD 578 million. Hemen will remain responsible for the performance guarantees towards the yards on these contracts.
The proceeds from the Private Placement will be used to fund the purchase of the abovementioned 16 newbuilding contracts and also to finance further growth. Frontline 2012 is currently in specific discussions regarding a further material increase of the newbuilding program. A finalization of this is expected within the next 30 – 60 days.
Hemen Holding Ltd., including related parties, has invested USD 120 million in the private placement.
RS Platou Markets AS, Arctic Securities AS, DNB Markets, and Carnegie ASA have acted as joint lead managers and book-runners for the Private Placement.
[mappress]
Shipbuilding Tribune Staff, May 29, 2012;