Norwegian offshore shipping company Solstad Offshore has struck a refinancing deal, which will see the establishment of a new parent company controlled by Kjell Inge Røkke-dominated Aker.
Oslo-listed Solstad said in a filing that an agreement has been reached with Aker, AMSC, DNB and Eksfin for NOK9.7bn ($879.5m) worth of loans to fully refinance the fleet loan maturing end-March 2024.
As a result, Solstad NewCo is being set up in which NOK4bn of new equity will be raised, with Aker contributing at least NOK2.25bn and guaranteeing a further NOK750m.
Meanwhile, Aker-dominated AMSC, formerly American Shipping Company, will contribute the owning entity for the CSV Normand Maximus in exchange for NOK1bn of new shares in Solstad NewCo.
The transaction gives Aker together with the Røkke group about 56% of the new Solstad.
Solstad will retain around 27% ownership of the new company, while its existing shareholders, excluding Aker, will receive subscription rights to participate in the NOK750m private placement of new shares, corresponding to around 14% stake.
A separate filing on Monday revealed Norwegian investor Christen Sveaas, via his investment vehicle Kistefos, buying 2.4m shares in Solstad and now owns 13.1% of the company.
AMSC and Solstad will have the right to appoint one board member and one observer to the board of directors of Solstad NewCo, while Aker will take the majority of the board seats.
Solstad NewCo will consist of 35 AHTS and CSV vessels. Solstad will retain full ownership of the remaining business consisting of 7 AHTS and CSV vessels and 50% ownership in the Normand Installer joint venture with SBM.
“The refinancing will establish a robust industrial platform positioning Solstad NewCo as a global leading offshore operator with one of the most modern fleets of high-end vessels and a healthy balance sheet including NOK4BN of new equity.The strong market outlook and the immediate deleveraging provides a solid basis for increased value creation with a clear ambition to initiate quarterly dividend payments from Solstad NewCo in 2024. This will further strengthen and diversify upstream dividends in Aker. Aker strongly supports the Solstad group, Solstad NewCo, its management team, and its competent organization,” said Øyvind Eriksen, President and CEO of Aker.
