Petrofac raising £200m to pay SFO bribery fine
Petrofac was fined following SFO investigation
Petrofac, the Aberdeen-based oil services company, is raising £200 million ($275m) in a placing and open offer which will pay for its recent fine for bribery offences.
The issue price of the 173.5m new shares is 115p. This represents a discount of 27.2% to the closing share price of 158p on 25 October.
The capital raise is part of a wider refinancing plan announced today, comprising a $500 million bridge financing facility expected to be replaced or refinanced by way of a public bond issuance, expected to be launched later today. There is also a $180 million new revolving credit facility.
Proceeds from the capital raise will be used, alongside the refinancing plan and available cash reserves, to pay the $106 million (£77 million) penalty imposed in relation to the SFO investigation, and to repay existing debts.
Earlier this month the firm admitted it failed to prevent former executives from paying bribes to win contracts in the Middle East.
Ayman Asfari: investing $38m in the capital raise
It said today’s actions will extend Petrofac’s debt maturities and strengthen the company’s platform to execute its strategy.
The capital raise will involve a placing of $138 million (£100.2 million) and a placing and open offer of $137 million (£99.4 million).
Ayman Asfari has irrevocably committed to invest at least $38 million in the capital raise and to vote in favour of the corresponding resolutions at the general meeting.
All directors have committed to invest in the capital raise at the issue price.
Petrofac chairman René Médori said: “Support from all our shareholders and debt providers in the refinancing plan will provide the company with a stable platform from which to grow and look to the future with confidence. I welcome the continuing support of our largest shareholder and fellow board member Ayman Asfari, as Petrofac moves on to the next chapter of its history.”
Sami Iskander, group chief executive of Petrofac, said: “Petrofac has a tremendous opportunity over the coming years to grow and re-establish itself as one of the world’s leading providers of critical services to the energy industry.
“Following a quieter period during the pandemic, we see activity in our markets increasing significantly at a time when the full potential of our business has been unlocked – in recent years we have refocused on compliance, rebased our cost competitiveness, and now we are re-energised under a new team and a new strategy.
“The completion of the financing will cement a fantastic platform from which I am confident that we will deliver significant shareholder value over the coming years.”
Mr Asfari said: “I am pleased to support today’s fund raise which, after more than four difficult years, puts the company squarely back on the path to recovery. I look forward to Sami and his leadership team restoring Petrofac to its greatest potential.”