Floatel to Use Private Placement for Financing New Build Program

Floatel International Ltd is contemplating a private placement of approximately USD 150 million through the issuance of new shares in Oslo directed towards Norwegian and international investors.

“The Private Placement will further strengthen Floatel International as a leading provider of high- specification, modern accommodation vessels to the offshore oil and gas industry,” the company said in a press release

The proceeds from the Private Placement will be used to finance the company’s new build program for accommodation vessels at Keppel FELS Shipyard, growth capex and for general corporate purposes.

The Company has retained Fearnley Securities and Pareto Securities as joint lead managers and joint book-runners in connection with the Private Placement. ABN-Amro and SEB Enskilda have been appointed as co-managers.

Last year, Floatel hired Keppel FELS to build the company’s fourth accommodation semisubmersible (semi) unit worth US$315 million.

Floating accommodation platforms are needed to provide additional living quarters for support personnel in exploration and production activities. Such support personnel are required during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

[mappress]
Floatel, April 4, 2013