Fairstar successfully places equity to fund fleet expansion strategyCompany News // June 30, 2010
Fairstar Heavy Transport has announced the successful completion of a private placement towards Norwegian and international institutional investors of 25,000,000 new shares at a price of NKr 8.50 per share.
The share issue represents approximately 53 per cent of the shares outstanding prior to the placement. Total gross proceeds from the placement amounted to approximately NKr 213 million.
The proceeds from the placement will be used to fund the up-coming equity installment for the new build programme with GSI, as announced on 2 June 2010, and will ensure that Fairstar fulfills its obligations under a contract with the Chevron Australia Pty Ltd and Kellogg Joint Venture for the Gorgon project as announced 1 June 2010.
The company's newbuild, Forte, will begin transporting modules for the Gorgon LNG Project in May 2012 under the terms of a 12 month contract which can be extended for an additional four month period at the option of the Chevron Australia Pty Ltd and Kellogg Joint Venture-Gorgon.