Songa Offshore has on October 16, 2008 completed a private placement for a total of 10,600,000 new Shares. The subscription price was set to NOK 25.00 per share, giving gross proceeds of approximately NOK 265 million.
The total issued share capital in Songa will increase from NOK 94,707,538 to NOK 105,307,538. The total number of shares will increase from 94,707,538 to 105,307,538.
Pareto Securities AS acted as manager in the transaction.
The purpose of the private placement is to finance the Company's short term liquidity requirements, including debt repayment, cash calls from total return swaps and increase in Company's cash holdings.
Allocation letters will be sent out today. Payment date has been set to October 21, 2008. The subscribers will be delivered existing and unencumbered shares in the Company that are already listed on Oslo Bors, pursuant to a share lending agreement entered into between Pareto Securities AS, Songa and Spencer Energy AS.
The shares delivered to the subscribers will be tradable from the date they are delivered.
The Board of Directors in Songa has resolved to conduct a subsequent repair offering towards the shareholders in Songa that were not invited to participate in the Private Placement. The subscription price in the Subsequent Offering will be equal to the price set in the Private Placement.
Based on the shareholders registered and invited to participate in the Private Placement, the size of the Subsequent Offering is expected to amount to approximately 7,400,000 shares, however, the total number of shares issued in the Private Placement and the Subsequent Offering will in no event exceed 18,005,805 shares, which is within the board's current authorizations.
The Company will also prepare a prospectus to be approved by Oslo Bors in connection with the Subsequent Offering and listing of the new shares issued in the Private Placement. Consequently, the timing of the Subsequent Offering is not yet decided, but the offering period is currently expected to start ultimo November/primo December 2008.
Spencer Energy AS, a company controlled by Chairman Arne Blystad subscribed for US $8,000,000 and has not yet received allocation.