Øystein Stray Spetalen’s investment vehicle S.D. Standard ETC (SDSD), formerly known as Standard Drilling, has moved to raise NOK150m ($16m) and list its wholly-owned subsidiary, Standard Supply, on Euronext Growth Oslo to finance further growth within the offshore support vessel segment.
Standard ETC said the funds would be used for potential acquisitions of platform supply vessels and has retained Clarksons Securities to facilitate the private placement.
“We are experiencing solid interest for our high-quality PSV assets with low overhead costs and no debt. We see strong signs of an unprecedented market upturn and our vessels are positioned to fully capture the soaring day rates,” said Martin Nes, chairman of the board of directors of SDSD and Standard Supply.
The private placement amount is said to be fully covered and guaranteed before launching through a syndicate of cornerstone investors. Songa Capital, Uthalden and Coltrane Asset Management will subscribe for shares for NOK108.6m. A guarantee consortium led by the Spetalen company Ferncliff Tih has guaranteed the remaining amount, corresponding to shares for NOK41.4m. The guarantee consortium has a right to be allocated shares for up to NOK13.8m in the private placement.
Standard Supply’s initial listing is expected on Euronext OTC around June 16, while the Euronext Growth listing could take place during July. The company owns two large-size platform supply vessels (PSVs) and has a 28.1% holding in five mid-sized PSVs. Five of the seven vessels are today operating in the spot market. The vessels, including cash and working capital, has a pre-money equity value of NOK448m ($47.5m).
“By strengthening Standard Supply’s financial profile further, teaming with tier-1 investors and creating a listed vehicle, the company has a strong platform for leveraging on the growth and expansion opportunities in the upturn cycle for oil service vessels,” added Nes.