REC Group will undertake a range of financial programs to ensure it can continue its expansion plans and boost liquidity. The company said that it would restructure its debt and increase its lines of credit, including bond issues, as well as offer a new share rights issue, subject to stockholder agreement.
In total, the financial plans would improve its liquidity by as much as US$1.39 billion (NOK 9 billion). The lowest level would be NOK 7 billion, according to the company. The planned rights issue would raise approximately US$617 million alone.
“Contact with our shareholders has indicated that our owners are highly supportive of the company taking action to ensure our long-term financial flexibility. Through new equity and significantly improved credit lines, we have taken the necessary steps to secure long-term financing of our ongoing capital expenditure program and provided a foundation for developing potential opportunities in a growing industry,” says Ole Enger, President and CEO.
REC will call for an extraordinary general meeting to be held on June 5, 2009, to resolve the rights issue.