Norwegian shipowner PGS took less than a day to complete a $150m private share sale to boost refinancing efforts.
The Oslo-listed seismic survey player said it had sold the maximum amount of stock in the offering at NOK 6.70 ($0.65) each on Tuesday.
This represented a 6.8% discount to the average price that day.
The cash will go on reducing leverage, extending the refinancing window to March 2024.
“A strengthened balance sheet, together with the ongoing market recovery in the marine geophysics market, will reduce the refinancing risk and the expected cost of a refinancing,” PGS said.
It said it had received strong support from existing shareholders, including commitments worth $65m from Coltrane Asset Management, DNB Asset Management, MH Capital and funds managed by Vicama.
A follow-on offering has now been launched worth up to NOK 307m.
PGS said it is seeing a market recovery, with strengthening demand for its marine geophysical services, and it expects further improvement in 2023.
The owner is in pole position for a significant 4D acquisition contract in Brazil scheduled to start next year.
Backlog to grow
It has not received a formal contract award, but said a final agreement is likely.
Any deal would “significantly increase the company’s order backlog and booking”.
PGS owns 10 seismic vessels and is diversifying into carbon capture survey work.
In June, it revealed an award for data acquisition relating to Equinor’s Smeaheia carbon storage project in the North Sea.