Atlantic Sapphire launches $35m convertible loan placement.
Atlantic Sapphire has launched a private placement for a $35 million convertible loan, the company said Monday.
The subscription period opened 15 September at 09:00 CEST and will close on 16 September at 16:30 CEST. DNB Carnegie, part of DNB Bank, is acting as manager.
According to the company, the placement is fully covered through pre-commitments. These include $11.4 million each from Nordlaks Holding and Condire Management, $3.4 million from Strawberry Capital, and $50,000 each from CEO Pedro Courard and CFO Gunnar Aasbo Skinderhaug. The total allocation to Nordlaks, Condire and Strawberry may be scaled back in the event of demand from other investors.
The convertible loan, first announced on 31 August, is subject to approval by an extraordinary general meeting scheduled for later this month. The board has noted that while the structure offers participation opportunities only to certain investors, it considers the transaction the most viable financing option under current market conditions.
In parallel with the placement, Atlantic Sapphire has agreed amendments to its credit facility with DNB Bank, including covenant adjustments, the release of restricted cash, revised maturity to July 2027 and delayed instalments.
The company has also increased the size of its bridge loan from $6 million to $8 million. The facility, provided by Strawberry Capital, Nordlaks and Condire, will be rolled into the convertible loan subject to shareholder approval.
Atlantic Sapphire said the terms had been negotiated on an arm’s-length basis with its largest shareholders, who have committed a total of $26.2 million.
Notifications of allocation are expected on 17 September.
