Ezra seeks to raise $300m in refinancing move

The provider of integrated offshore solutions to the oil and gas industry has proposed renounceable underwritten rights issue and issue of convertible bonds to raise up to $300m, and proceeds will be used to repay SGD225m ($166m) of fixed rate notes and SGD150m of perpetual securities.

“With our net gearing lowered, we will be in a better position to bring more value to our shareholders. Further, we are maintaining our cost discipline with greater focus on cost-base rationalisation and optimisation to improve margins,” said Eugene Cheng, chief financial officer of Ezra.

“We are confident of the long term prospects of the industry underlying the business segments of Ezra,” he added.

Credit Suisse (Singapore) Limited has been appointed as the sole financial advisor, sole global coordinator and lead manager of the rights issue and the sole bookrunner of the convertible bonds issue. The investment bank and DBS Bank have been appointed as joint underwriters of the rights issue.

“The rights and convertible bonds issue is part of our broader strategy to expand our capital and investor base, deleverage and secure the group’s long term growth prospects,” Cheng said.

Ezra added that it is also separately working with its banks for additional financing lines to support its refinancing exercise.