The board of directors of Euronav NV announced that the company has raised $150 million (USD) via a private placement of a perpetual convertible preferred equity instrument.
The instrument will be issued at par and will bear an interest of 6% during the first five years payable annually in arrears in cash or in shares at the option of the company. The price against which the securities can be contributed is €5.776 (or $7.928715 at EUR/USD exchange rate of 1.3727) per common share. The company will have an option to force the contribution if the share price reaches a certain level over a certain period of time and the company has completed a listing in New York (NYSE or NASDAQ).
Full features of this instrument as well as reports related to the issuance of this instrument can be found in the investors section of Euronav’s website euronav.com under the heading Perpetual Convertible Preferred Equity.
The securities will be issued to strategic investors including GoldenTree Asset Management LP and York Capital Management LLC, as well as to reference shareholders of Euronav.
The net proceeds from the issuance of the securities will be used by Euronav to strengthen its balance sheet liquidity, to diversify its funding sources, for general corporate and working capital purposes as well as to provide financial flexibility to fund potential acquisitions that may arise in the future.
Paddy Rodgers, CEO of Euronav, said, “Strengthening the Euronav balance sheet at this time of the cycle clearly distinguishes the company from its competitors. Euronav is now excellently positioned with well-priced debt on long maturities providing a good investment for any sustained improvement in the tanker market. The company intends to take advantage of opportunities arising in the market and to offer a safe haven for distressed ships whose owners need commercial and/or technical support. Euronav has always been at the forefront of consolidation through pooling and merger and is now the most solid platform to take advantage of opportunities as they arise in the large crude tanker market.
The company is currently evaluating the best timing to list in New York where most shipping companies are listed. This dual-listing will increase the opportunities available to the company and should also diversify the shareholding base in a more liquid market than Euronext Brussels.”
DNB Markets and RMK Maritime provided financial advisory services to Euronav in connection with the issuance of these securities.