Construction specialist Lamprell signed a $ 45 million revolving commercial credit facility to cover the costs of building two IMI jack-up platforms.
Lamprell said it secured funding for the continued construction of these two platforms earlier this month.
He added that he 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 requirements of the two newly constructed IMI jack-up platforms. The platforms are currently under construction at the group’s site in Hamriyah.
“We are delighted to have signed this new initial working capital facility for both IMI platforms and are proud of the support of our major relationship banks in the current and volatile macroeconomic environment. This demonstrates the high level of support and the close relationships we have with regional financial institutions, ”said Christopher McDonald, Chief Executive Officer of Lamprell.
The withdrawal of the initial facility will be conditional, among other things, on the completion by the group of a capital increase of 19.99%, which it plans to finalize in the fourth quarter of 2021.
There is an uncommitted option for an additional $ 45 million accordion financing arrangement under the terms of the original facility. This should be available in the first quarter of 2022.
“Lamprell has been successful in transforming their business over the past few years, making a timely diversification into renewables and digital businesses, and we are confident that the new funding will strengthen our balance sheet and help us access the growth potential of our two addressable markets. renewable energy and oil and gas, ”added McDonald.
Just days after that, Lamprell launched a placement of 67,900,313 placement shares for 32.0 pence per share. In connection with the Placement, certain Directors will directly subscribe a total of 445,000 new ordinary shares in the capital of the company. According to the company, the total gross proceeds from the capital raising will be approximately $ 30.1 million.
The issuance of 68,345,313 New Ordinary Shares, once issued, will represent approximately 19.99% of the existing issued share capital of the company prior to the capital increase. This fulfills the condition set in the loan agreement.
It should also be remembered that Lamprell was awarded a platform conversion contract by BW Energy less than a week ago. It will see the company transform a jack-up platform into an offshore production facility for one of BW Energy’s fields off Africa.
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