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Fossil Energy

about 10 years ago

Banks okay Solstad’s financing plan

Norwegian shipping company Solstad Offshore informed on Friday that its financing plan has been approved by the company’s banks and bondholders. The company also said that sale-and-leaseback agreement for the vessel Normand Maximus has been entered into, all on terms satisfactory to Aker Capital. Ba

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Norwegian shipping company Solstad Offshore informed on Friday that its financing plan has been approved by the company’s banks and bondholders.

The company also said that sale-and-leaseback agreement for the vessel Normand Maximus has been entered into, all on terms satisfactory to Aker Capital.

Back in June this year, Solstad, together with Aker and its bondholders, said it developed a plan to strengthen the company’s balance sheet and enable Solstad to withstand the downturn in the market and to contribute to the consolidation of the fragmented offshore service vessel industry.

It was agreed that Aker would 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 could be converted into new shares in Solstad or in a subsidiary of Solstad.

The bondholders in SOFF04 approved the financing plan on July 6, 2016.

Accordingly, Solstad said on Friday, all conditions for completion of the share capital increase and the issuance of the convertible loan, subscribed August 31, 2016, were met.

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As for the Normand Maximus, the 180 meter-vessel, largest in Solstad’s fleet, will be leased to Saipem, the Italian oil and gas industry contractor. The offshore construction vessel is equipped with a 900-ton active heave compensated offshore crane and a 4,000-ton under-deck carousel for storage of flexible pipes, cables, and umbilicals.

Offshore Energy Today Staff

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