Singapore’s Ezra has announced plans to raise up to $300 million through a combination of rights issue and convertible bonds in order to refinance its debt.
The offshore O&G contractor said it expects to raise approximately US$150 million from the rights issue which will be primarily applied to the redemption of the S$225 million fixed rate notes.
Furthermore, Ezra intends to raise approximately S$200 million (approximately US$150 million) of convertible bonds, out of which S$150 million should go to repay perpetual securities.
Credit Suisse has been appointed as the sole financial advisor, global coordinator and lead manager of the rights issue and the sole bookrunner of the convertible bonds issue.
The Singapore DBS Bank and Credit Suisse (Singapore) have been appointed as joint underwriters of the rights issue.
The company said that trough this refinancing strategy, plans to deleverage its balance sheet and position the itself to tap on future growth opportunities.
At the end of the second quarter, Ezra reported backlog at approximately $2.3 billion, the majority of which the company expects to be executed over the next 24 months.