Lamprell Secures $45M Bank Loan To Build Jack-Up Duo

Lamprell Secures $45M Bank Loan To Build Jack-Up Duo
Lamprell has signed a $45 million revolving trade loan facility to cover the costs of building two IMI jack-up rigs.

Construction specialist Lamprell has signed a $45 million revolving trade loan facility to cover the costs of building two IMI jack-up rigs.

Lamprell said that it secured the funding for the continuation of the construction of these two rigs earlier this month.

The added that it signed a $45 million revolving trade loan facility with the First Abu Dhabi Bank and the Emirates Development Bank. This initial facility will assist with the working capital requirements of the two IMI newbuild jack-up rigs. The rigs are currently under construction at the group’s Hamriyah yard.

“We are delighted to have signed this new initial working capital facility for the two IMI rigs and are proud of the support from our key relationship banks in the current, volatile macro environment. This demonstrates the high level of support and close relationships that we maintain with the regional financial institutions,” Christopher McDonald, Chief Executive Officer of Lamprell, said.

The drawdown of the initial facility will be conditional on, amongst other things, the group completing a 19.99 percent equity raise, which it expects to complete in the fourth quarter of 2021.

There is a non-committed option for a further $45 million accordion funding arrangement as part of the terms of the initial facility. This is expected to be available in the first quarter of 2022.

“Lamprell has been successful in transforming its business over the past few years, making a timely diversification into renewables and digital ventures, and we are confident the new funding will strengthen our balance sheet and assist us in accessing the growth potential in both our addressable markets of renewables and oil and gas,” McDonald added.

Only days after this, Lamprell launched a placing of 67,900,313 Placing Shares for 32.0 pence per share. In conjunction with the Placing, certain Directors will directly subscribe for an aggregate of 445,000 new ordinary shares in the capital of the company. According to the company, the total gross proceeds from the capital raising will be approximately $30.1 million.

The issue of 68,345,313 New Ordinary Shares, when issued, will represent approximately 19.99 percent of the existing issued ordinary share capital of the company before the capital raising. This fulfills the condition set in the loan agreement.

It is also worth reminding that Lamprell was awarded a rig conversion contract by BW Energy less than a week ago. It will see the company turn a jack-up rig into an offshore production facility for one of BW Energy’s fields offshore Africa.

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