Fairstar Heavy Transport N.V., a provider of high-end ocean transportation services, announced today that it intends to issue up to USD 335 million of five-year, senior secured debt securities in a private placement not registered under the U.S. Securities Act of 1933.
The proceeds of the proposed offering will be used to re-finance the Company’s current one-year facility with ING Bank as well as provide Fairstar with all of the liquidity it requires to meet its current liabilities, including any of the outstanding unsecured NOK denominated bonds that may be put to Fairstar on July 16, 2012 as the result of the recent purchase by Dockwise White Marlin B.V. of over 33% of Fairstar’s outstanding shares.
In addition, USD 20 million will be applied to fund the second instalment of the 48,000DWT semi-submersible vessel FATHOM. The Netherlands-based company announced its plans to build the FATHOM on April 20, 2012. The vessel is expected to be delivered in 2013.
The remaining proceeds of the proposed offering will be used for general corporate purposes, as well as associated transaction fees and expenses.
The proposed offering is anticipated to close within August 2012.
Press Release, July 12, 2012