Refinancing deal boosts Solstad, with Aker as major shareholder

Under the deal announced in a stock exchange filing, Aker Capital, a wholly owned subsidiary of Aker ASA, and Solstad have developed and negotiated Nkr9.70Bn (US$872M) in new credit facilities, underwritten by DNB and Eksfin, to fully refinance the fleet loan maturing 31 March 2024.

As part of the refinancing, Solstad will establish a parent company, Solstad NewCo, for a new corporate structure in which Nkr4.00Bn of new equity will be raised where Aker will contribute minimum Nkr2.25Bn and underwrite an additional Nkr0.75Bn (US$6.7M) to significantly improve the financial position of Solstad NewCo. 

In addition, AMSC will contribute the owning entity for construction support vessel Normand Maximus against issuance of Nkr1.00Bn equivalent of new shares in Solstad NewCo.

“The refinancing will establish a robust industrial platform positioning Solstad NewCo as a global leading offshore operator with one of the most modern fleets of high-end vessels and a healthy balance sheet including Nkr4.00Bn of new equity" said Aker president and chief executive Øyvind Eriksen.

To navigate the complex refinancing involving multiple parties, Aker has worked closely with Solstad, DNB and Eksfin, allowing non-bank debt holders to be fully repaid. Due to the complex nature of Solstad’s current and potential liabilities, including a residual claim from former lease arrangements with respect to Normand Maximus, the refinancing required the establishment of the Solstad NewCo structure.

Under the refinancing deal, SOFF will retain around 27% ownership of Solstad NewCo while existing shareholders of SOFF, excluding Aker, will receive subscription rights to participate in the Nkr0.75Bn tranche of the private placement of new shares, corresponding to around 14% ownership of Solstad NewCo. Aker will underwrite the private placement allowing Solstad NewCo to satisfy certain requirements under the new credit facilities entered into as part of the refinancing.

Aker’s direct ownership of Solstad Newco will be around 41%, depending on the extent the underwriting arrangement will be utilised, plus another 15% financial exposure through Aker’s shareholding in Solstad and Akers’ shareholding and TRS arrangements in AMSC.

Solstad Offshore chief executive Lars Peder Solstad said the refinancing would benefit all stakeholders in the company. “This combination will position both Solstad NewCo and the Solstad group for future growth and shareholder value creation in the projected strong offshore market going forward. Aker has been an instrumental contributor to the Solstad group from day one and without Aker’s support, both over the past years and going forward, this refinancing would not have been possible. Passing this important milestone means we have landed a solid industrial solution," added Mr Solstad.

Solstad Offshore’s fleet includes subsea, anchor handling tug supply and renewable windfarm support vessels.