North Atlantic-focused drilling firm Songa Offshore is to launch a major recapitalisation programme as it looks to raise more than £260million.
The fundraising exercise, to be conducted through private placement and bond issues, is being conducted as the company looks to cover the costs of its Category D rigs.
The proposed deal would also see the Norwgian firm changing the terms of its deal with Statoil for chartering the rigs, including cancelling purchase orders for the rigs and agreeing repayments of up to £31million with the North Sea operator by 2026.
“If implemented, the refinancing proposal will facilitate successful delivery of the company’s Cat D rigs, as well as creating a solid and sustainable long term financial platform for the Company in the best interest of all stakeholders,” Songa said in a statement.
The move comes after the company admitted earlier this year it may have to sell off assets in order to be able to afford its Category D rigs currently under construction.
Profits fell at the company in the second quarter after the selloff of one of its rigs, the Songa Eclipse, to Seadrill.