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Eitzen Chemical completes private placement
(Nov  13  2009)

Eitzen Chemical is to propose to the company's 26th November EGM to issue a total of 515,200,000 new shares at a price of NOK 1.25 per share representing gross proceeds of NOK644 mill ($115 mill).

The subscription price was determined through a book-building process conducted by ABG Sundal Collier Norge ASA and Carnegie ASA, acting as joint lead managers of the private placement.

"We are very pleased to see that we have been successful in raising new equity to Eitzen Chemical, based on the continued support from existing shareholders as well as new interest from prime domestic and international institutional investors. The equity issue is a key milestone in the process of re-establishing a robust financial platform for the company.

“We are confident that the actions that we have been taking through our restructuring will be to the long term advantage of all of our stakeholders and are optimistic that we will get the support that is needed to now conclude this process and build a stronger Eitzen Chemical", said CEO Terje Askvig.

Its completion is subject to - the approval of the private placement by the EGM and agreements with Eitzen Chemical's banks regarding certain proposed amendments to the company's main bank loan agreements.

Camillo Eitzen (CECO), the main shareholder of Eitzen Chemical, was allocated 223,800,000 shares in the private placement and will own 45.53% of the shares of the company following its completion.

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