Ezra Holdings aims to raise up to $300 million via a rights issue and a convertible bond, the Singapore-based company said in an announcement Saturday.
Ezra, a global offshore contractor and provider of integrated offshore solutions for the oil and gas industry, will use proceeds to deleverage its balance sheet, refinance debt and pursue future growth opportunities, the company said in a statement.
Credit Suisse is the sole financial advisor, global coordinator and lead manager on the rights issue and the sole bookrunner for the convertible bond.
The rights issue will consist of 2.03 billion new shares, offered on the basis up to 200 rights shares for every 100 existing ordinary shares held by existing shareholders, the statement said. The company aims to raise $150 million from the rights issue, which will be used to redeem S$255 million fixed rate notes.
Ezra's founder Lee Kian Soo and Lionel Lee, the company's largest shareholder, will fully invest in the rights issue. Combined, they own 24.7% of Ezra. Credit Suisse and DBS will underwrite the remaining 75.3% of the company's shares.
The company aims to raise $150 million from the convertible bonds, which will launch after the rights issue has been priced.
"The convertible bonds market is interesting to us, as it presents an opportunity to broaden our investor base, potentially reduce our debt financing costs and introduce more liquidity into our balance sheet," Eugene Cheng, Ezra's chief financial officer, said in the statement. "We believe that the convertible bonds issue will generate high level of interest given that it represents an attractive opportunity for institutional and accredited investors seeking to participate in the medium- to long-term prospects of the offshore oil and gas industry."
Proceeds from the convertible notes will give Ezra sufficient funds for refinancing its debt, the statement said.
Both the rights issue and the convertible bonds are subject to approval by the Singapore Stock Exchange, as well as shareholder approval.
Last September, Ezra's affiliate EOC Ltd floated its shares in Singapore in a secondary listing -- it has been trading on Norway's Oslo Bors since 2007. It was part of a wider reorganisation of the group, which split Ezra Holdings into two distinct entities and gave it majority control of EOC. EOC has since changed its name to EMAS Offshore.
DBS and OCBC oversaw the secondary listing in September, which allowed EMAS to purchase Ezra's offshore support services arm EMAS Marine for $520 million. This comprised of $150 million in cash and $370 million by issuing 280.13 new shares in Ezra at Nok8.18 per unit.
