Aker and Solstad Secure $1.11 Billion Credit for Fleet Refinancing
Aker and Solstad Successfully Secure Credit Facilities
Aker and Solstad have achieved a major milestone by securing NOK 9.7 billion ($1.11 billion) in credit facilities to refinance a fleet loan due in March 2024. This successful effort has led to the establishment of Solstad NewCo, a new entity that will raise NOK 4.0 billion in new equity. The refinancing has received support from DNB and Eksfin, with significant contributions from Aker and AMSC.
AMSC Transfers Ownership to Solstad NewCo
To further strengthen the newly formed entity, AMSC, an Aker-backed group, will transfer the ownership of CSV Normand Maximus to Solstad NewCo in exchange for NOK 1.0 billion worth of new shares. Solstad NewCo will now comprise a fleet of 35 AHTS and CSV vessels and is expected to initiate dividend payments in 2024. InvestingPro Tips states that Solstad NewCo holds more cash than debt on its balance sheet, with liquid assets surpassing short-term obligations.
Complex Liabilities Lead to New Structure
The creation of Solstad NewCo was necessitated by the complex nature of Solstad’s liabilities, including residual claims from former lease arrangements with CSV Normand Maximus. Proforma EBITDA for Solstad NewCo is projected to be between NOK 2.6-2.8 billion for 2023, with net debt estimated to decrease from NOK 7.7-7.9 billion by the end of 2023 to NOK 5.8-6.0 billion by the end of 2024.
Securing the Future of SOFF and Solstad NewCo
The successful refinancing ensures the future stability of both SOFF and Solstad NewCo. SOFF will retain approximately 27 percent ownership, while Aker will hold approximately 41 percent direct ownership. Existing SOFF shareholders will also have subscription rights to participate in the NOK 0.75 billion private placement tranche.
Shareholders’ Agreement and Future Plans
A shareholders’ agreement is included in the refinancing package, allowing Solstad and AMSC to appoint a board member each to Solstad NewCo’s board, while Aker can appoint a majority. The agreement also outlines plans to list Solstad NewCo shares on a regulated market within a year of the transaction closing.
Positive Outlook and Recent Developments
Solstad’s CEO, Lars Peder Solstad, views the refinancing as beneficial for all stakeholders and a growth catalyst in the robust offshore market. Aker’s CEO, Øyvind Eriksen, commends the refinancing for establishing Solstad NewCo as a global leading offshore operator with a modern fleet. These positive developments follow investor Christen Sveaas acquiring 2.4 million Solstad shares via Kistefos, now owning 13.1% of the company.
Impressive Financial Performance and Potential for Growth
InvestingPro’s real-time metrics highlight Solstad’s strong financial performance and potential for future growth. With a market cap of 3320M USD and a P/E ratio of 6.2, the company demonstrates a high earnings multiple. Furthermore, Solstad’s revenue growth for FY2023.Q2 stands at 67.23%, and the gross profit margin for LTM2023.Q2 is 34.3%. These figures underscore the company’s resilience and attractiveness to investors.
This article was generated with the support of AI and reviewed by an editor.
