American Shipping Company raising $40m to back offshore vessel deal

Oslo-listed owner of Jones Act compliant tankers, American Shipping Company (AMSC), who earlier this year expanded its portfolio with the purchase of one of the most advanced offshore subsea construction vessels, is looking to raise around $40m via a private placement of new shares.

The net proceeds will be used to partly finance the acquisition of the 2016-built
Normand Maximus and for general corporate purposes.

The Aker-dominated firm has retained Clarksons Securities, DNB Markets and Pareto Securities as managers of the private placement, directed towards certain investors, including existing shareholders and new potential investors.

Aker Capital, a subsidiary of Aker, currently owns just over 19% of the shares in the company and has additional financial exposure to 30.77 % of the shares through arrangements with DNB Bank and Skandinaviska Enskilda Banken, in total 49.84 %. To maintain Aker’s full financial exposure in the company, the trio has pre-committed to subscribe for offer shares and has been granted the right to an equivalent portion of the private placement.

In addition, a company partly owned by AMSC’s board member Peter Knudsen has pre-committed to subscribe for 15,000 shares, while the CEO Pål Lothe Magnussen has pre-committed to subscribe for 30,000 shares. Chair Annette Malm Justad has also pre-committed to subscribe for 8,000 shares.

AMSC struck a deal in May this year to take over Solstad’s OSCV Normand Maximus from its secured lenders, for about $157m. The vessel will deliver in the fourth quarter after it concludes its current contract. Solstad will continue to operate the ship under a new bareboat contract with AMSC, with options to extend and to buy it after five and 10 years.