Stolt completes $100 million private placement, closes $100 million bonding facility

By Jeff Pines

Washington, Feb. 13 - Stolt Offshore SA said it closed its $100 million European private placement for 45.5 million common shares at $2.20 per share. In addition, it plans to sell $50 million more in a second issue.

Net proceeds from the two sales will be used as security for a $100 million bonding facility, working capital, to prepay debt and for general corporate purposes.

Stolt Offshore has also issued 17 million new common shares to Stolt-Nielsen Transportation Group Ltd., a subsidiary of Stolt-Nielsen SA, upon conversion of all outstanding Class B shares to common shares.

In addition, Stolt-Nielsen Transportation will convert $50 million of subordinated debt into 27,727,272 new common shares at $2.20 per share.

After anticipating covenant violations in September, Stolt Offshore and Stolt-Nielsen started holding discussions with their bank lenders.

HSBC is among Stolt Offshore's largest creditors.

Paris-based Stolt Offshore SA is a regional business unit of U.K-based Stolt Offshore M.S. Ltd., a contractor to the offshore oil and gas industry.

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