Oslo, 10 February 2017: Reference is made to the
announcement by Songa Bulk AS ("Songa Bulk" or the
"Company") published on 9 February 2017 regarding a
contemplated private placement of shares with a minimum of
USD 50 million (the "Private Placement").
The Board of Directors (the "Board") of Songa Bulk is
pleased to announce that the Company has successfully
completed the Private Placement of approximately USD 100
million with the support of new and existing investors,
through the subscription of 20 million new shares (the "New
Shares") at a subscription price of NOK 42 per share (the
"Subscription Price"), raising gross proceeds of
approximately NOK 840 million. The Company's share capital
will as a consequence increase with NOK 100,000,000 to NOK
179,300,000, divided on 35,860,000 shares each with a
nominal
value of NOK 5.
The net proceeds from the Private Placement will be used for
(i) vessel investments; (ii) working capital; and (iii)
general corporate purposes. It is intended that vessel
investments shall be made within the first 12 months
following the Company's initial capital raising in November
2016, and that any net proceeds from sale of vessels
following the first two years of the initial capital raising
will be returned to investors through dividends or capital
reductions, subject to maintaining a reasonable working
capital.
There was considerable interest in the Private Placement,
and the USD 100 million placement was oversubscribed. A
broad base of existing shareholders and new investors were
offered to participate. The Private Placement is made
subject to shareholder approval in an extraordinary general
meeting, expected to be held on or about 17 February 2017.
The subscription price in the Private Placement was made at
close to market price with no substantial discount. As a
consequence, the shareholders' preferential rights are
waived.
The New Shares to be issued under the Private Placement will
be listed on Merkur Market as soon as practically possible
after registration of the share capital increase in the
Norwegian Register of Business Enterprises, expected on or
about 20 February 2017.
Clarksons Platou Securities AS and Fearnley Securities AS
acted as Joint Lead Managers and Bookrunners for the Private
Placement.
For further information, please contact:
Herman Billung, CEO
Tel: + 47 23 01 14 34
hb@blystad.no