FLEX LNG to raise $170 million
FLEX LNG Ltd. (Oslo OTC: FLNG) has announced its intention to undertake a private placement of up to $170 million of new equity.
FLEX LNG LTD was founded in 2006 with the purpose of commercializing the world's first floating LNG production unit.
FLEX LNG has placed an order for two M-FLEX vessels at Samsung Heavy Industries (SHI), utilizing the Samsung SPB (Self-supporting, Prismatic Shape, IMO type-B) containment system with delivery from 2010 onwards.
The SPB containment technology was developed by Ishikawajima-Harima Heavy Industries Co Ltd of Japan (IHI) which granted SHI a license in 2004.
The purpose of the new private placement is to finance the second yard instalment for the company's first two floating LNG producers. The proceeds of the placement would also allow the company to grow the fleet beyond the existing two firm vessels.
Of the total $170 million equity private placement, existing shareholders hold warrants that if exercised in full will raise $50 million.
The company has engaged Pareto Securities ASA and SEB Enskilda ASA as Joint Lead Managers in the possible private placement, and Arctic Securities ASA as Co-Manager.