Øystein Stray Spetalen-controlled S.D. Standard ETC has announced plans to list the Norwegian semisub rig owner Dolphin Drilling on Euronext Growth and raise up to $40m through issuing new common shares in the company at a pre-money equity value of $100m.
Standard ETC, formerly known as Standard Drilling, acquired a 25% stake in Dolphin Drilling in May for $10m. Spetalen and Standard ETC’s chair, Martin Nes, joined the board of directors, with Nes as chairman.
Formerly known as Fred Olsen Energy, Dolphin Drilling owns and operates three rigs and employs approximately 350 people at operational bases in Aberdeen, Scotland, Stavanger, Norway, in addition to offshore personnel.
The money from the private placement will primarily be used to finance the special periodic survey and mobilisation of the Blackford Dolphin rig (pictured) and reactivation of Borgland Dolphin. The 1974-built Blackford Dolphin has been booked for operations in Nigeria at $232,500 per day plus a mobilisation fee of $12m commencing late 2022.
“Dolphin Drilling has attractive assets, a strong team and a solid platform to leverage on the favorable market development with improved rates. The contract for Blackford Dolphin underlines the potential of the company and its assets, and we believe Dolphin Drilling will capitalise on the continued expected tight rig market for the rest of the fleet,” said Nes.
Before the issue is completed, NFH 220436 a subsidiary of Spetalen-controlled Ferncliff TIH, will change its name to Dolphin Drilling and purchase, through a share share-swap agreement, directly 100% of the shares in the current top company in the Dolphin Drilling system, Dolphin Drilling Holdings Limited (DDHL).
The pre-money share ownership of Dolphin Drilling will mirror the existing shareholding of DDHL, whereby Standard ETC will own approximately 38% to 39%, and Strategic Value Partners (SVP) and other shareholders will own the remaining 52% and 9% to10%, respectively.
Ferncliff TIH has pre-committed to buy shares for $3m in the issue, directly or through a company Spetalen controls. At the same time, Espen Western, or a company he controls, has pre-committed to underwriting for $1m.
DNB Markets, a part of DNB Bank, Arctic Securities and Pareto Securities have been hired to act as joint bookrunners and to advise on and effect a private placement. The first day of the listing is expected to be on or about mid-October 2022.
