Ezra Holdings to raise $300m via rights issue & convertible bonds

Visual from the company website

Singapore-listed Ezra Holdings that provides integrated offshore solutions to the oil and gas industry, said it plans to raise up to $300 million through a rights issue that will involve sale of shares to existing investors and issuing convertible bonds.

The company said it will use the proceeds to repay S$225 million fixed rate note and S$150 million perpetual securities.

The company further claimed that refinancing its debt would strengthen its balance sheet and also put it in “good stead to tap future growth opportunities”.

It plans to raise about $150 million from the rights issue and this will be used for the redemption of the S$225 million fixed rate notes.

It also intends to raise approximately $150 million of convertible bonds.

The move to raise additional capital comes as the company’s shares have fallen around 25 per cent this year on account sustained weakness in crude prices. “We are confident of the long-term prospects of the industry underlying the business segments of Ezra. With our net gearing lowered, we will be in a better position to bring more value to our shareholders. Further, we are maintaining our cost discipline with greater focus on cost-base rationalisation and optimisation to improve margins,” said Eugene Cheng, Ezra’s Group chief financial officer.

“In addition, with the delivery of our flagship subsea construction vessel, Lewek Constellation in the third quarter of FY2015, we expect significant revenue contribution thereafter. This will further improve operational cash flows for Ezra and in combination with the moderation of capital expenditures post-delivery of Lewek Constellation we expect to meet our planned capital expenditures and foreseeable debt maturities,” he added.

Credit Suisse (Singapore) Limited has been appointed as the sole financial advisor, sole global coordinator and lead manager of the rights Issue and the sole bookrunner of the convertible bonds Issue. Credit Suisse (Singapore) Limited and DBS Bank Ltd have been appointed as joint underwriters of the rights issue.

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SG Roundup: Ezra Holdings, Fleetpartners

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.