Norway’s Gram Car Carriers, the world’s third-largest tonnage provider within the pure car truck carrier (PCTC) segment, has issued a $110m equity private placement in connection with its listing on Euronext Growth. This year’s first day of listing is likely to occur on or around November 22.
The private placement will consist of a primary offering of approximately $100m in gross proceeds by the issuance of new shares based on the offer price with a range of NOK67 ($8) to NOK84 ($10) per share and an over-allotment offering of up to 10% of the new shares, which is equal to approximately $10m. The offer period started on Monday morning and ends after the end of the trading day on November 9.
The company plans to use the net proceeds to fund the acquisition transfer of the fleet, strengthen its balance sheet through repayment of debt and for general corporate purposes. Some primary insiders, including members of the company’s management and board, as well as certain existing shareholders, have indicated that they will subscribe for shares worth around $6m.
The private placement is part of a transaction whereby ownership and/or control related to the fleet and related assets, supported by a new $180m senior secured credit facility and a new $70m lease, and existing leasing deals of $46m, are transferred from the preceding company structure in Singapore to a newly established company in Norway.
Gram Car Carriers has a fleet of 16 fuel-efficient vessels spread across the distribution, mid-size and panamax segments. The company said it will commence recontracting the vessels for longer term contracts in a rising market as they start to roll off the current short to medium term charter contracts.
