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. Last Updated: 07/27/2016

Integra Offers 1.9 Million New Shares

MOSCOW — Russian oil field services firm Integra launched an offering of up to 1.9 million new shares on Monday, with a source saying the company expects to raise about $100 million.

The offering is aimed at covering the bulk of a partial prepayment of a $250 million loan.

"Integra plans to close the offering by the end of tomorrow. It expects to raise some $100 million, and the offer will be priced with a discount to the market price," a source close to the deal told Reuters.

He added that the offering is aimed at European investors.

Integra's Global Depository Receipts, known as GDRs, were down 1.05 percent at $2.82 on the London Stock Exchange.

The company said the offering is launched in the form of up to 38 million GDRs representing up to approximately 26.5 percent of outstanding share capital.

"Seventy percent of the gross proceeds from the offering is expected to be used for a partial prepayment of the company's $250 million syndicated loan arranged by the European Bank for Reconstruction and Development," it said in a statement.

The company expects to use the remaining 30 percent of the gross proceeds primarily for capital expenditure and general corporate purposes.

In June, Integra warned the EBRD that it might breach the terms on the $250 million loan granted earlier this year after sales plunged 49 percent during the first quarter.

The EBRD and other commercial banks granted the loan in February to help Integra refinance its short-term debt and fund capital expenses.

The company's net debt as of Aug. 27 — the latest available figures — was $290 million, compared to $335 million at the end of 2008.