13th Oct 2016 16:21
LONDON (Alliance News) - UK North Sea-focused oil and gas explorer EnQuest PLC on Thursday said its placing and open offer has now completed, and it continues to expect to raise GBP82.0 million.
EnQuest said around 314.2 million shares have been conditionally placed with institutional investors at 23 pence per share under the placing and open offer, subject to clawback.
The open offer will comprise, in aggregate, of 356.7 million shares at 23p per share, EnQuest said, which will mean GBP82.0 million will be raised.
A company in which its Chief Executive Amjad Bseisu's extended family holds an interest, Double A Ltd, committed around GBP28.0 million under the placing and open offer.
EnQuest did not say what stake Double A will have following completion of the placing and open offer.
The bookbuild for the placing was run by JPMorgan Cazenove and Bank of America Merrill Lynch.
Shares in EnQuest closed down 3.1% at 26.88p on Thursday.
The company had said earlier in the day that the placing was part of a wide-ranging restructuring that is being undertaken, launched formally on Thursday, including amendments to its revolving credit facility and to its outstanding loan notes, plus a renewal of its surety bond facilities.
If successful, EnQuest said the restructuring will provide the company with a "stable and sustainable capital structure", reduced debt obligations and greater liquidity.
"The proceeds from the placing and open offer will be used to continue development work on the Kraken development in the North Sea, along with working capital for the company," said Bseisu.
By Sam Unsted; [email protected]; @SamUAtAlliance and Hannah Boland; [email protected]; @Hannaheboland
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