Viking Drilling in New Equity Issue

Viking Drilling ASA has now fully underwritten an equity issue of US $20 million which may be called by the board no later than Feburary 28, 2008. The equity issue is underwritten by some of the largest shareholders, of which Mr. Christen Sveaas, the chairman and lead invest, has underwritten an amount of $7.3 million.

The equity issue will be a rights issue for the shareholders, and the issue price will be determined by the board in accordance with normal market practice for a rights issue at the time the board decides to carry out the issue.

A flat fee of 4.5% of the equity amount will be paid to the underwriters which is payable upon closing of the underwriting.

The equity underwriting was undertaken by the company without the assistance from any investment banker.

If SS Viking Century or SS Viking Prospector is sold for more than $22 million each before the new equity is paid-up in cash, the underwriting commitment shall be reduced by the excess amount, and the equity issue may be reduced accordingly.

The board has today made a resolution to accept the $60 million bond financing, which was announced on February 26, 2007, and the allotment has been made today.

The board is pleased with having secured total financing of $80 million which will enable the company to proceed with the reactivation of SS Viking producer without further delay and to upgrade the rig to broaden the number of contract opportunities which is expected to generate a higher dayrate. The board will endeavor to secure better and cheaper financing when we have a drilling contract for SS Viking Producer which is expected toward the end of the reactivation program.


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours