Aker and Solstad have successfully secured NOK 9.7 billion ($1.11 billion) in credit facilities to refinance a fleet loan due in March 2024, leading to the establishment of Solstad NewCo, a new entity that will raise NOK 4.0 billion in new equity. The refinancing effort has been supported by DNB and Eksfin, with significant contributions from Aker and AMSC.
AMSC, an Aker-backed group, will transfer the ownership of CSV Normand Maximus (NYSE:MMS) to Solstad NewCo in exchange for NOK 1.0 billion worth of new shares. The newly formed entity, Solstad NewCo, will consist of a fleet of 35 AHTS and CSV vessels and is expected to start dividend payments in 2024, according to InvestingPro Tips, which also indicates that the company holds more cash than debt on its balance sheet and that its liquid assets exceed short term obligations.
The complex nature of Solstad's liabilities, including residual claims from former lease arrangements with CSV Normand Maximus, necessitated the creation of this new structure. Proforma EBITDA for Solstad NewCo is projected at NOK 2.6-2.8 billion for 2023, with net debt estimated at NOK 7.7-7.9 billion by year-end 2023, decreasing to NOK 5.8-6.0 billion by year-end 2024.
The refinancing safeguards the future of both SOFF and Solstad NewCo, with SOFF retaining about 27 percent ownership and Aker holding approximately 41 percent direct ownership. Existing SOFF shareholders will have subscription rights to participate in the NOK 0.75 billion private placement tranche.
A shareholders' agreement has been included in the refinancing package, which allows each of Solstad and AMSC to appoint a board member to Solstad NewCo's board while Aker can appoint a majority. The agreement also includes plans to list Solstad NewCo shares on a regulated market within a year of the transaction closing.
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, commended the refinancing for establishing Solstad NewCo as a global leading offshore operator with a modern fleet.
This significant development follows investor Christen Sveaas acquiring 2.4m Solstad shares via Kistefos, now owning 13.1% of the company. This purchase occurred after Tidewater (NYSE:TDW)'s acquisition of 37 Solstad vessels for $577m following a 2020 restructuring precipitated by falling commodity prices and the COVID-19 pandemic. Solstad Offshore retains full ownership of the remaining business including 7 AHTS and CSV vessels, and a 50% stake in the Normand Installer joint venture with SBM.
InvestingPro's real-time metrics show that Solstad's market cap is 3320M USD, with a P/E ratio of 6.2, indicating that the company is trading at a high earnings multiple. The company's revenue growth for FY2023.Q2 is 67.23%, and the gross profit margin for LTM2023.Q2 is 34.3%. These figures underscore the company's strong financial performance and potential for future growth, which are key factors for investors to consider. For more insights and tips, readers can visit InvestingPro.
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