Norwegian solar panel maker Renewable Energy Corp is planning massive equity and debt issues - as well as a debt restructuring - which the Olso-listed group says should in total pump in NOK 7 bn to NOK 9 bn of liquidity, or $1bn to $1.4 bn.
REC said in a statement that on Tuesday it had resolved to strengthen its financial position to give it sufficient financial flexibility.
This will be done through restructuring of existing debt, adding new credit lines including a bond issue and issuing new shares through a fully underwritten rights issue.
Total liquidity effect
"The aggregate liquidity effect of the debt and equity measures will be in the range of NOK 7-9 bn," the company said.
In terms of debt, the company says it has successfully restructured existing debt and is adding new credit lines, including a bond issue, which in total are expected to amount to NOK 3-5 bn.
REC has engaged DnB NOR Markets, Nordea and SEB as Joint Lead Arrangers for the bond issue.
On the equity side, REC says it intends to complete an equity offering by issuing new shares to raise about NOK 4 bn.
The proposed equity offering will be conducted as a fully underwritten rights issue. The issue will be underwritten by REC's main shareholders Norwegian industrial and power groups Orkla/Elkem and Hafslund and other shareholders including a bank syndicate.
Bank syndicate
The banks include DnB NOR Markets - acting as Global Coordinator and Joint Bookrunner - Nordea, ABN AMRO and BNP Paribas. BNP will be Joint Lead Managers and Bookrunners.
"Contact with our shareholders has indicated that our owners are highly supportive of the company taking action to ensure our long-term financial flexibility," said CEO Ole Enge.
"Through new equity and significantly improved credit lines, we have taken the necessary steps to secure long-term financing of our ongoing capital expenditure programme and provided a foundation for developing potential opportunities in a growing industry," Enge added.
REC will hold an extraordinary general meeting on June 5 to resolve the rights issue.