June 25 - Fairstar Heavy Transport has successfully completed a private placement towards Norwegian and international institutional investors of 25,000,000 new shares at a price of NOK 8.50 (USD 1.3) per share.
The share issue represents approximately 53 percent of the shares outstanding prior to the placement. Total gross proceeds from the Private Placement amounted to approximately NOK 213 million (USD 32.8 million).
The proceeds from the Private Placement will be used to fund the up-coming equity installment for the new build program with GSI as announced on June 2nd and will ensure that Fairstar fulfills its obligations under a contract with the Chevron Australia Pty Ltd. and Kellogg Joint Venture- Gorgon as announced on June 1st.
"Access to capital markets will continue to be a critical factor to remain competitive in our industry. Fairstar maintains the support of a large and valuable group of well-informed shareholders. Despite the fragile market conditions Fairstar has successfully raised new capital to invest in the future fleet of the marine heavy transport industry", commented Mark de Haas, Fairstar CFO.
Philip Adkins, Fairstar CEO added: "Fairstar is determined to provide our clients with the transportation solutions they require to facilitate the development of high-value, complex, energy infrastructure projects. In the next three to five years there will be a shortage of modern, true open stern semi-submersible heavy transport ships. FJORD and FJELL have demonstrated their pricing power in the most valuable segment of our market. Thanks to the support of our shareholders, The FORTE will join the Fairstar fleet in time to participate in the Gorgon LNG Project. We believe our strategy to expand our fleet will reward our stakeholders handsomely for many years to come."