Fredriksen's Northern Drilling raises $246 mln

The drilling rig company says raised NOK 2 billion Norwegian crowns ($245.91 million) via private placement of 31.75 mln new shares at a subscription price of NOK 64 per share​.

The firm says ‍that private placement was substantially over-subscribed. Following the issuance, the company will have an issued share capital of $77.75 million divided into 77.75 million common shares, each with a nominal value of $1.00.

Hemen Holding Ltd., a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family and affiliated with Greenwhich Holdings Limited ("Greenwich"), Northern Drilling's largest shareholder, was allocated 8,257,000 shares in the private placement. Hemen does not hold other shares in the Northern Drilling. Greenwich holds 23 mln shares in the Northern Drilling.

Following completion of the private placement Greenwich and Hemen will own in aggregate 31.26 mln shares in the Northern Drilling, equalling approximately 40.20 percent of the company's common shares and votes.

In order to facilitate timely delivery of already listed shares, delivery of offer shares allocated in the private placement will be made by delivery of existing shares in the company borrowed by the managers from Greenwich Holdings Ltd. ("Greenwich"), the main shareholder of the Company.

The shares delivered to investors in the Private Placement will thus be tradable on Oslo Axess immediately upon settlement, expected on or around Nov. 14.

The managers will settle the share loan from Greenwich with the new shares issued in connection with the Private Placement.

Pareto Securities AS, Fearnley Securities AS, Nordea Bank AB (publ), Norwegian branch, and Carnegie AS have acted as managers in the private placement

Fredriksen's Hemen Holding Ltd. is the largest shareholder in drilling rig company Seadrill (SDRL) which filed for U.S. Chapter 11 bankruptcy on Sept. 12.

Fredriksen's Hemen Investments Limited, an affiliate of Hemen Holding Ltd., and a group of investment funds have made a proposal to invest $1.06 billion via new secured bonds and new equity as part of the restructuring plan presented to the U.S. court. Some of Seadrill's unsecured bondholders are opposing the restructuring plan and working on an alternative plan.

Northern Drilling's shares traded 3.1 percent higher for the day at 0840 GMT, while Seadrill traded up 7.5 percent.

Reporting by Ole Petter Skonnord and Nerijus Adomaitis