June 6, 2005
Aker American plans $100 million private placement
Kvaerner ASA today said that Aker American Shipping ASA is in the market for a private placement of approximately US$100 million during the month of June 2005. A listing of the company's shares on the Oslo Stock Exchange is also planned. A possible listing is expected to take place in the course of the third quarter 2005.
Aker American Shipping is a company established to acquire Kv¾rner ASA's shipyard in Philadelphia and construct and to own product tankers for bareboat charter into the U.S. Jones Act market.
The private placement will partially finance the construction and ownership of the 10 product tankers, which the company has agreed to bareboat charter to Overseas Shipbuilding Group, Inc (OSG). Selected institutional and other professional investors will be invited to participate. The placement is based on a valuation of the company which gives Kv¾rner ASA a post-transaction holding well above 50 per cent. The aim is obtain commitments for the private placement in the course of June 2005.
Kvaerner has also received a binding commitment from DnB NOR Bank ASA for a long-term financing for the five first product tankers to be delivered from KPSI. The interest is hedged for the fixed charter period for 70 percent of estimated loan financing on all the ten vessels.
Aker American Shipping is planning to have the company's shares listed on the Oslo Stock Exchange, and will also seek to make a public offering and possibly a secondary sale prior to the possible listing. In this relation Aker ASA will consider buying out Kv¾rner and incorporating Aker American Shipping into the Aker group. In this case, the price for the shares will be the same as the price otherwise paid by the market for shares in Aker American Shipping. A possible listing is expected to take place by the end of the third quarter of 2005.
These transactions and a subsequent listing are dependent on certain conditions, including approval from relevant authorities.
Enskilda Securities ASA and DnB NOR Markets have been engaged as managers for the planned placement and subsequent listing