GC Rieber plans rights issueCompany News // December 28, 2017
The Board of directors of GC Rieber Shipping has resolved to call for an extraordinary general meeting in the company and proposed that the meeting approves a rights issue of NKr 100 million at a subscription price of NKr 7.50 per share.
The shareholders of the company will receive tradable rights to subscribe for new shares in connection with the rights issue.
The company's largest shareholder, GC Rieber AS, has fully underwritten the rights issue and will subscribe for 70.4 per cent of the issue.
AS Javipa and Pelicahn AS, which are controlled by Paul Chr Rieber, chairman of the board of the company, will subscribe for a minimu of 2.3 per cent and 0.8 per cent, respectively.
In connection with the rights issue, the company has negotiated better terms and certain amendments to the credit facilities for its subsea fleet, including covenant relaxations, a reduction of scheduled amortization by 80 per cent over the next six bi-annual instalments and extension of the tenor until 31.12.2022.
The amendments are subject to credit committee approvals from the relevant banks.
In a statement the company said its board had assessed several options and concluded that the rights issue will put the company in the best position.
Together with the amended debt structure it will provide the company with financial runway for the next three years and strengthen the competitive position of GC Rieber Shipping's subsea operations.
In combination with the successful establishment of Shearwater GeoServices in December 2016, this concludes the refinancing processes initiated during the spring of 2016.
An extraordinary general meeting will be held on 26 January 2018.