Oslo-listed semisub accommodation vessel owner Prosafe has raised approximately $31m (NOK350m) via a second private placement of new shares this year.
The net proceeds from the private placement of 5.83m shares at a price per share of NOK60 will be used for working capital, preparation for commencement of new contracts and general corporate purposes.
The owner and operator of six accommodation units and one tender support vessel posted a third-quarter net loss of $5.7m on fleet utilisation rate of some 52%, with four vessels in operation by the end of the quarter.
In May, Prosafe agreed a $30m private placement of 2.72m shares at a price per share of NOK117. Back then, the company said its 2023 liquidity had been impacted by the low activity in the North Sea and capital expenditure plus mobilisation spend for new contracts in Brazil and the US Gulf of Mexico and that additional cash would be required to mitigate a covenant breach and potential liquidity shortfall from Q3 and Q4 2023.
The latest successful placement has significantly strengthened the company’s liquidity position and it is now fully funded through 2024.
“This provides the company with runway to secure new contracts in an improving market and to
continue pursuing strategic alternatives ahead of a refinancing at year-end 2025,” Prosafe said in a filing.
The company’s backlog at the end of third quarter stood at around $268m, down from $293m same time last year.
