Paratus Announces Listing on Euronext Growth Oslo
Hamilton, Bermuda, June 28, 2024 – Paratus Energy Services Ltd. (“Paratus” or “Company”), today announced its successful listing on Euronext Growth Oslo (“the “Listing”) under the ticker symbol "PLSV". This milestone marks a significant step in the Company’s growth strategy and improves its ability to pursue its strategic objectives. Trading in the Company's shares will commence today at 09:00 CEST.
The listing follows a private placement of 15,309,059 new shares (the “Offering”), priced at NOK 51.66 per Share (equivalent to USD 4.90 based on the official exchange rate of Norges Bank on Friday June 21, 2024), which raised gross proceeds of the NOK equivalent of USD 75 million. The Offering was more than ten times oversubscribed, attracting strong interest from domestic and international investors. The net proceeds from the Offering will be used for general corporate purposes and to increase balance sheet flexibility.
Paratus enters the public market with a robust financial foundation. The Company boasts a strong cash flow profile, industry leading backlog position in attractive market segments, and an efficient capital structure, allowing for immediate and significant distributions to shareholders:
- Exceptional Cash Flow Profile: Paratus has significant cash flow generating capabilities today, with a strong cash position of USD 126 million plus marketable securities of USD 41 million . Additionally, there is an expected unwinding of a substantial receivable balance of USD 222 million1 at Fontis following an irregular build-up due to the client’s need for supplier re-certification arising from the separation from Seadrill.
- Industry Leading Backlog: Paratus’ strong cash flows are underpinned by its significant backlog position (USD 1.5 billion1, ) at attractive EBITDA margins. The current market outlook is supportive of continued dayrate appreciation.
- Attractive Capital Structure: Paratus maintains an efficient and flexible capital structure. The Company recently completed a highly successful USD 500 million bond raise, one of the largest Nordic raises in recent times. Following the bond raise, the majority of its debt maturities are not due until 2029. The debt agreements offer high flexibility on distributions, growth, and additional subsidiary level debt capacity.
The Company remains focused on implementing an efficient capital allocation policy and delivering strong and stable shareholder returns.
Robert Jensen, Chief Executive Officer of Paratus, said: "Today's listing on Euronext Growth is a pivotal moment for Paratus and a testament to the hard work and dedication of our entire team. Our assets have a long-term track record of generating significant cash flows, and we expect to maintain that trajectory with our recent contract awards. The listing will further strengthen our strong financial foundation with enhanced access to capital markets. We remain committed to operational excellence and pursuing opportunities that will drive long-term growth and shareholder returns."
Mei Mei Chow, Chair of the Board of Paratus, added: "Our public listing represents more than just a financial achievement; it establishes Paratus as a robust platform for continued growth and success. I want to express my gratitude to our dedicated management team and employees, loyal customers, and supportive investors who have played crucial roles in bringing us to this significant moment. I'm immensely proud of what we’ve achieved since Paratus’ emergence as a newly restructured company and am very excited about the opportunities that lie ahead."
An updated company presentation is available at the Company's website (www.paratus-energy.com).
The Company intends to pursue a transfer to the main list on the Oslo Stock Exchange as soon as practicable after the completion of the Offering and Listing, and the Company will revert in due course with more information regarding such transfer of listing venue.
Advisers DNB Markets, a part of DNB Bank ASA acted as Euronext Growth Advisor to the Company in connection with the Listing (the "Euronext Growth Advisor") and jointly, together with Arctic Securities AS, acting as Joint Global Coordinators. The Joint Global Coordinators are, together with ABG Sundal Collier ASA, Fearnley Securities AS and Pareto Securities AS, acting as joint bookrunners in respect to the Offering.
Ducera Partners LLC acted as financial advisor to the Company.
Advokatfirmaet Schjødt AS acted as legal counsel to the Company, while Advokatfirmaet Wiersholm AS acted as legal counsel to the Euronext Growth Advisor and the Managers, in connection with the Offering and Listing.
About Paratus Paratus Energy Services Ltd. is an investment holding company of a group of leading energy services companies. The Paratus Group is primarily comprised of its ownership of Fontis Energy and a 50/50 JV interest in Seabras. Fontis Energy is an offshore drilling company with a fleet of five high-specification jack-up rigs working under contracts in Mexico. Seabras is a leading subsea services company, with a fleet of six multi-purpose pipe-laying support vessels under contracts in Brazil. In addition, Paratus is the largest shareholder in Archer Ltd, a global oil services company, listed on the Oslo Stock Exchange. For further information visit www.paratus-energy.com
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