REC: New financing proposal with minor tweaks

After the last refinancing plant went down the toilet when convertible bond holders refused to take a write-down on their debt, Renewable Energy Corporation ASA (OSE: REC) has today come up with a new plan that is basically more of the same, with the exception of leaving the convertible bondholders alone. A new EGM is called for or about July 27th. There is still a private placement of 1.3 billion and a subsequent offering of 375 million for shareholders who were shafted by the private placement on the table.

Chairman Jens Ulltveit-Moe’s Umoe AS, Orkla ASA (OSE: ORK) and Board member Peter Ruzicka’s Canica AS are all allocated a substantial number of shares. The difference from earlier proposition is that Umoe AS and Canica AS are taking a smaller number of shares than before and the difference is covered by Orkla. For this proposition to succeed, EGM needs to approve it and a bank debt refinancing needs to take place subject only to completion of the private placement and customary conditions. The subsequent offering is also a little bigger than before, to try to appease existing shareholders not given the possibility to take part and to cover for the loss from convertible bondholders refusal.