EMGS hammers out refinancing plan

In need of additional financing, the Norwegian geophysical services company, EMGS, has started working on a refinancing proposal which should provide it with some stability. 

Following a thorough assessment of all options, an independent board of director of the company which did not include board members representing the major shareholders has, in cooperation with the company’s three largest shareholders, developed a comprehensive refinancing proposal, EMGS said on Friday.

According to the company, the refinancing consists of two elements; a rights issue with gross proceeds of up to $12.5 million, whereof $10 million is underwritten; and issuance of a new, fully underwritten convertible bond loan with a total nominal amount of up to $32.5 million.

The underwriting will be regulated by way of underwriting agreements, with fully termed underwriting agreements expected to be executed on or about March 5, 2018.

The rights issue will provide the company with financing for general corporate purposes. The net proceeds from the bond issue will be used to refinance the company’s existing bond issue.

“The independent board is firmly of the opinion that the comprehensive refinancing will secure and maintain shareholder value going forward, by providing the company with a significantly improved financial runway, stability and flexibility,” EMGS said.

The proposal is subject to approval from the company’s general meeting, set to be held on March 23.

EMGS in February posted revenues of $11.3 million for 4Q 2017 compared to $12 million in revenues in the year-before period. The company reduced its quarterly loss to $5.9 million from $15.1 million in 2016.

Losses for the full year 2017 were $21.5 million, up from a loss of $52.1 million in 2016.

The company expects market fundamentals to remain weak going into 2018.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Posted on March 2, 2018 with tags .

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GeoConvention 2019

GeoConvention offers some of the best local and international insights to efficient energy exploration…

read more >

16th MOSCOW INTERNATIONAL OIL AND GAS EXHIBITION

The Moscow International Oil & Gas Exhibition display products like oil and gas products, oil and gas services…

read more >

Erbil International Oil & Gas Exhibition 2019

The event will be held at the Erbil International Fair Ground which is one of the largest energy related events in Iraq…

read more >

THE 24 th IRAN INTERNATIONAL OIL , GAS , REFINING & PETROCHEMICAL EXHIBITION

The second largest OPEC producer, Iran sits atop 11 percent of oil and 18 percent of gas…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply