Euronav: USD 350m Capital Increase to Support Maersk VLCC Acquisition

marinelink.com
Monday, January 06, 2014
File Photo (Euronav): VLCC Euronav Famenne.

On 5 January 2014, Euronav announced the acquisition of fifteen (15) Very Large Crude Carriers (VLCC) from Maersk Tankers Singapore Pte Ltd. for a total acquisition price of USD 980 million. Euronav follows that announcement by advising its intent to raise USD 50,000,000 by way of a capital increase under the authorized capital and that 5,473,571 new shares will be issued upon full payment of the subscription price, which is expected to be at or around 10 January 2014.

 

The subscription price for the shares was set at 6.70 EUR per share which is above the average closing price of the Euronav share during the 30 calendar days prior to today’s board decision and takes into account a EUR/USD exchange rate of 1.3634. A group of external institutional investors, including BHR Capital LLC, Glendon Capital Management LP, GoldenTree Asset Management LP, Solus Alternative Asset Management LP, certain funds managed by York Capital Management Global Advisors, LLC and their affiliates, undertook to subscribe to the capital increase decided by the board and also committed to subscribe to a subsequent capital increase, subject to successful debt funding and shareholders’ approval. Both the capital increase under authorised capital and the subsequent capital increase to be decided upon by the shareholders’ meeting are substantially oversubscribed.


The board has further decided today to convene an extraordinary shareholders’ meeting in February, where the shareholders will be requested to approve a capital increase up to an amount of USD 300,000,000 against issuance of up to 32,841,528 new shares. That capital increase will also be reserved to the same institutional investors and the issue price proposed for this capital increase is also set today at 6.70 EUR per share.
 

Further details in connection with the equity component of the financing under the authorized capital are included in the board report drawn up in accordance with articles 596 and 598 of the Companies Code which can be found on the company’s website under the section ‘Investors’ and further information related to the shareholders’ meeting capital increase will be distributed in due time together with the formal invitations for that meeting.
 

Euronav will finalize in the coming days a USD 500 million bank debt facility as well as USD 235 million of mezzanine financing in order to complete the funding of the acquisition. In relation to the acquisition of the Maersk fleet, Paddy Rodgers, CEO of Euronav said: “This acquisition is a first step towards a wider consolidation of the world tanker fleet, with the concurrent benefits of synergy and logistical enhancement to the benefit of all stakeholders. Euronav lead the way in 1999 with the establishment of the first VLCC pool, Tankers International LLC and it is our belief that effective access to capital markets will require tanker owning companies to become larger so as to provide sufficient scale and liquidity to meet the requirements of large institutional investors. That also fits well with the industry requirement for long-term stable companies, who are owners, operators and managers with a strong operational reputation and a good understanding of the markets. Euronav has effectively become the only platform of comparable size dedicated to the crude oil tanker sector and has ambition to grow further.”

RMK Maritime advised on the acquisition, DNB Markets provided financial advisory services in connection with the financing and Argo Law advised on the Belgian legal aspects and on the structuring of the financing.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MHI to Change Name of Group Company

Effective November 1 Mitsubishi Heavy Industries, Ltd. (MHI) will change the name of its group company in Singapore from Mitsubishi Heavy Industries Engineering & Services Private Ltd.

Petrobras P-66 Platform Module to Boost Production

The P-66 platform’s first modules, built at the Tomé Ferrostaal Consortium’s Module Plant located at the Port of Maceió, Alagoas, are now ready and loaded on the São Tomé barge.

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

Finance

Ensco plc Reports 3Q, 2014 Results

Ensco plc  today reported earnings per share from continuing operations of $1.93 in third quarter 2014, up 16% from $1.66 in third quarter 2013. Adjusted for a $0.

Chevron Announces Quarterly Dividend

The Board of Directors of Chevron Corporation today declared a quarterly dividend of one dollar and seven cents ($1.07) per share, payable December 10, 2014,

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

News

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Pipelines Pod Propulsion Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2344 sec (4 req/sec)