Polarcus Raises NOK 300 Mln through Private Placement

Seismic contractor Polarcus has raised NOK 300 million in gross proceeds through a private placement.

The Oslo-listed Polarcus earlier this week obtained support for a restructuring of its balance sheet from its key stakeholders.

These stakeholders, being the company’s banks, lease providers and certain bondholders and shareholders, have entered into an agreement with the company to support the restructuring.

Polarcus proposed to issue shares with gross proceeds of approximately NOK 340 million (approximately USD 44 million) through a private placement of NOK 300 million, and a fully underwritten repair issue of NOK 40 million.

The equity issues together with the restructuring and an increased working capital facility will improve the company’s liquidity by approximately USD 221 million to 2022, Polarcus said.

ABG Sundal Collier ASA and DNB Markets, a part of DNB Bank ASA acted as joint managers in the private placement.

The completion of the Private Placement is subject to the satisfaction of the closing conditions which have to be fulfilled by March 15, 2018.

“Following an assessment of the company’s financial condition, the need for new investors and preferred timing of the equity issue, the board of directors decided that it is in the company’s and shareholders’ best interests to carry out the equity raise as a private placement,” Polarcus said in a statement.

The Board will propose to the EGM to conduct a subsequent offering to raise approximately NOK 40 million at the same price per share as the private placement to existing shareholders in the company as of the end of trading on January 25, 2018.