Construction specialist Lamprell has signed a $45 million revolving commercial loan facility to cover the construction costs of two IMI jack-up rigs.
Lamprell said it secured the funding for continued construction of those two rigs earlier this month.
The group added that it had signed a $45 million revolving commercial loan facility with First Abu Dhabi Bank and Emirates Development Bank. This initial installation will contribute to the working capital needs of the two new IMI jack-up platforms. The rigs are currently under construction at the group’s Hamriyah yard.
“We are delighted to have signed this new initial working capital facility for both IMI platforms and are proud of the support of our key relationship banks in the current volatile macroeconomic environment. This demonstrates the high level of support and close relationships we have with regional financial institutions,” said Christopher McDonald, Managing Director of Lamprell.
The drawdown of the initial facility will be conditional, among other things, on the group carrying out a capital increase of 19.99%, which it expects to complete in the fourth quarter of 2021.
There is an uncommitted option for another accordion financing agreement of $45 million under the terms of the original facility. This should be available in the first quarter of 2022.
“Lamprell has successfully transformed its business over the past few years, diversifying in a timely manner into renewable energy and digital businesses, and we are confident that the new financing will strengthen our balance sheet and help us access the growth potential of our two addressable markets. renewable energy and oil and gas,” McDonald added.
Just days after that, Lamprell launched a placement of 67,900,313 placement shares for 32.0 pence per share. In parallel with the Placement, certain Directors will subscribe directly to a total of 445,000 new ordinary shares in the capital of the company. According to the company, the total gross proceeds from the fundraising will be approximately $30.1 million.
The issue of 68,345,313 New Ordinary Shares, when issued, will represent approximately 19.99% of the existing issued ordinary share capital of the company prior to the capital increase. This fulfills the condition set in the loan agreement.
It’s also worth remembering that Lamprell was awarded a rig conversion contract by BW Energy less than a week ago. It will see the company convert a jack-up rig into an offshore production facility for one of BW Energy’s fields offshore Africa.
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