Solstad Offshore has completed its Kjell Inge Rokke-backed refinancing despite a broadside by Christian Sveaas’ Kistefos in what has been a heated and public conflict between the two Norwegian investors.
The company said on Tuesday that it had finished the first step in the deal.
This takes care of its NOK 13.2bn ($1.3bn) financing needs with a mix of NOK 4bn in equity issued mostly to Rokke’s Aker Capital and a NOK 9.7bn loan from DNB and Export Finance Norway.
As part of the deal, Rokke will take a 57% stake in a new company, known as Solstad Maritime.
“The board remains convinced that the refinancing represents the best available alternative to safeguard shareholder values,” said chairman Harald Espedal.
“I cannot stress strongly enough that no shareholder or other third party to date has presented a fully financed alternative solution to Solstad Group’s NOK 13.2bn financing needs, which matures in two-and-a-half months.”
The financing needs included NOK 11.4bn in debt, plus a NOK 1.8bn claim stemming from a dispute over the AMSC-owned 178-loa offshore construction vessel Normand Maximus (built 2016).
As part of the agreement, AMSC will receive NOK 1bn in equity in exchange for the vessel.
The agreement was announced in October, but by December had attracted criticism from Sveaas, who through Kistefos had filed a letter requesting a shareholder meeting to take legal action against a litany of Solstad Offshore insiders.
Nearly two weeks after the initial letter, Solstad Offshore said the shareholder meeting had been “postponed in understanding” with Kistefos.
Tuesday’s announcement included a letter from Solstad Offshore’s board to shareholders elaborating on and defending the agreement.
In it, the board said discussions with Kistefos were ongoing.
It also disputed Kistefos’ claims that it had reached out to Solstad Offshore “repeatedly” to contribute refinancing solutions.
It maintains that Kistefos executives only reached out to chief executive Lars Peder Solstad twice.
“The first time was in March 2023, and concerned the purchase of a ship and not refinancing,” the board’s letter read.
“The second time was in mid-September 2023 when the CEO was called to ask whether the Maximus claim would be paid in full.”
Kistefos chief executive Bengt Rem has been approached for comment.
The investment firm has stakes in both Viking Supply Ships and Western Bulk and had spent much of the end of 2023 building up its stake in Solstad Offshore.
The Solstad board said save Aker Capital, there were no other offers for refinancing, despite the company outlining its needs in quarterly earnings statements.
It also noted that the refinancing was fair to shareholders as it allowed them to hold onto assets, even if diluted, as the alternative was a debt-for-equity swap that would have wiped out existing holders.
