GC Rieber Shipping successfully places shares in new seismic ventureCompany News // June 29, 2010
On 10 June 2010, GC Rieber Shipping (RISH) announced that it had entered into an agreement to acquire two high capacity seismic newbuildings from the Factorias Vulcano Yard.
In connection with the acquisition, RISH has now established a new stand-alone entity, Armada Seismic. In order to equity finance the acquisition of the two vessels, Armada Seismic has raised NKr 450 million in a private placement fully underwritten by RISH.
The private placement attracted solid interest from domestic institutional investors.
The placement is conditional on successful renegotiation of the parent company guarantee from RISH relating to Armada Seismic's current financing. Such renegotiation was expected to be concluded on or about 28 June, 2010. After the completion of the private placement, RISH retains approximately 65 per cent in Armada Seismic.
Carnegie acted as lead manager and sole book runner in the transaction. DnBNOR Markets acted as co-lead manager.