INDEPENDENT tanker company engaged in the ocean transportation and storage of crude oil and petroleum products, Euronav, is to raise US$1.08 billion to finance the purchase of 15 very large crude carriers (VLCC) from Maersk Tankers Singapore Pte Ltd. for $980 million.
The New York Stock Exchange-listed shipowner said in a statement it will finalise in the coming days a $500 million bank debt facility as well as $235 million of mezzanine financing in order to complete the funding of the acquisition.
The company's board has also decided to convene an extraordinary shareholders' meeting in February when the shareholders will be asked to approve a capital increase up to an amount of $300 million with the issue of 32.8 million new shares at EUR6.70 ($9.10) per share.
In addition, the board of directors has decided to raise an extra $50 million by the issue of 5.4 million new shares at the same price of EUR6.70 per share.
The company statement said a group of external institutional investors, including BHR Capital LLC, Glendon Capital Management LP, GoldenTree Asset Management LP, Solus Alternative Asset Management LP, certain funds managed by York Capital Management Global Advisors, LLC and their affiliates have undertaken to subscribe to the issue.
CEO of Euronav, Paddy Rodgers, said: "This acquisition is a first step towards a wider consolidation of the world tanker fleet, with the concurrent benefits of synergy and logistical enhancement to the benefit of all stakeholders.
"It is our belief that effective access to capital markets will require tanker owning companies to become larger so as to provide sufficient scale and liquidity to meet the requirements of large institutional investors."
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