Atlantic Sapphire secures indicative bridge loan as part of refinancing talks.
Atlantic Sapphire said it has received an indicative offer for a bridge loan of up to $10 million as part of ongoing discussions over a broader refinancing of the company.
The proposed financing comes from a group of shareholders and convertible lenders representing approximately 63 percent of the company’s shares and 93 percent of its outstanding convertible loan, according to the company.
The bridge loan would be split into two tranches and carry 12 percent annual interest with a 15 percent origination fee. The first tranche could be disbursed around 30 March, subject to conditions including consent from the company’s senior lender, DNB Bank ASA.
The loan would mature on 15 May 2026, with the possibility of extension if the parties reach agreement on a broader refinancing.
Atlantic Sapphire said the potential refinancing could involve a voluntary tender offer for shares at NOK 0.5 per share, followed by a rights issue priced at NOK 0.1 per share to raise proceeds equivalent to $15 million.
Under the proposal, the bridge loan could be converted into equity at the same price as the rights issue. The investor group would also agree to write off 23 percent of their holdings in the company’s convertible loan before converting the remaining balance into shares at the same price.
The company’s independent financial advisers estimate Atlantic Sapphire’s enterprise value at between $25 million and $75 million, while total financial debt exceeds $114 million.
Atlantic Sapphire said the refinancing would significantly alter the company’s capital structure and could lead to substantial dilution for existing shareholders.
Arctic Securities has been engaged as financial adviser as the company works toward a long-term financing solution.
