Norwegian seismic contractor PGS has raised $150m in a private placement of new shares. The Oslo-listed company said the private placement attracted strong interest from existing and new Norwegian, Nordic and international investors at a subscription price of NOK6.70 per new share, representing a 6.8% discount to the transaction day volume-weighted average price. Compared to the closing price on Tuesday, the shares were sold at an 8% discount.
The move was backed by PGS’ existing shareholders, including Magnus Halvorsen’s MH Capital, the Ulrichsen family’s Vicama, Coltrane Asset Management and DNB Asset Management, subscribing for around $65m worth of shares. The company’s management and board were also allocated new shares in the private placement.
The Oslo-listed PGS said it would use the cash to reduce its debt leverage. “The proceeds will position PGS to manage 2023 debt amortisation and extend the re-financing window to March 2024. A strengthened balance sheet, together with the ongoing market recovery in the marine geophysics market, will reduce the refinancing risk and the expected cost of a refinancing,” the company said in a filing.
Carnegie and Pareto Securities acted as joint bookrunners, while Advokatfirmaet BAHR AS acted as legal advisor in connection with the private placement.
In October, PGS won a contract from an undisclosed energy major for a 3D exploration project in Namibia. Announcing the private placement move, the company also said it is a frontrunner for a significant 4D acquisition contract in Brazil, scheduled to start in the second quarter of 2023.
