Kistefos aims to raise $20m in Western Bulk Chartering share sale
Kistefos hopes to raise up to $20m in additional equity in Western Bulk Chartering (also known as Kistefos Equity Operations) during the coming month.
The Norwegian private investment firm plans to invite investors who were previously shareholders in Bulk Invest (was Western Bulk) to buy shares in WBC, according to the firm’s Q1 2016 financial report.
Kistefos is led by Christen Sveaas, who is chairman of Bulk Invest, which filed for bankruptcy in early March. Kistefos acquired WBC from Western Bulk in early February.
The investment firm first mulled the WBC equity issue in mid-February, but the offer process is underway and will be conducted in stages over the next couple of months. An unnamed financial adviser has been mandated to help.
Most of the new capital is expected to be raised by the end of June, and Kistefos itself will contribute equity capital. The investment firm said it will “backstop” a part of the contemplated equity issue by providing a $10m guarantee.
Kistefos said its cash injection will used to strengthen WBC’s equity and cash position in order to fund its operations and future expansions.
In other news, WBC has been offered a new $8m bank loan from an unnamed lender, the agreement for which is expected to be signed off in early June.
The facility consists of a $6m credit line for working capital purposes, and $2m available for bank guarantees.
