Malaysia-listed offshore services provider Yinson Holdings plans to raise MYR300 million (USD79 million) share placement to pare down bank borrowings.
According to its filing to Bursa Malaysia, the proposed placement is slated to improve the company’s financial position by reducing its gearing to 0.31 times from the present 0.57 times. The proposed placement is also expected to raise the company’s gross proceeds to approximately MYR299.5 million.
The proceeds are based on the issuance of up to 103.3 million placement shares, representing about 10% of its total share base with an illustrative issue price of MYR2.90.
Related news:Yinson posts full-year profit up 75%
Yinson will use MYR289.51 million of the proceeds to reduce its bank borrowing of MYR823.2 million as of 31 January 2015.
A large lump of the company’s borrowings was used to finance the conversion and refurbishment of a floating production, storage, and offloading (FPSO) vessel, contract of which was awarded to Yinson by Ghanaian company Eni Ghana Exploration Production in January.
Yinson had arranged a term-loan facility of up to USD780 million for the financing of the FPSO.
This post was sourced from IHS Maritime 360: View the original article here.
