Prosafe SE may find it harder to complete a refinancing program after non-bank investors bought part of a loan made to the operator of accommodation units for offshore oil rigs, according to Danske Bank A/S.
“Senior bank debt shifting hands could make a new funding plan more tricky to reach,” Sondre Dale Stormyr, an Oslo-based Danske Bank analyst wrote in a June 10 report. The unidentified loan buyers may have “a shorter-term agenda,” which could complicate efforts to push through term changes requiring unanimous consent, he said.
Prosafe has said it expects to reach agreement with creditors on a funding plan in the next few months after the collapse in crude prices dented demand for its accommodation units. The Oslo-listed company may need to convert some unsecured bonds to equity, as well as raising about $125 million in new cash, Stormyr said.
Management expects earnings to drop to as low as $110 million next year, which Stormyr said was “surprisingly low.” The company forecast earnings of $170 million to $220 million for this year, versus $263 million in 2015.
Cecilie Helland Ouff, Prosafe’s senior manager for investor relations, declined to comment on the report.
The company said on June 1 that it’s in “constructive” dialog about its financial situation. It’s focusing on options that include new capital, looser senior loan terms and the conversion of at least some unsecured debt to equity.
Prosafe has about $1.4 billion of available credit facilities expiring in 2021 and 2022, according to data compiled by Bloomberg. It also has 2.4 billion kroner ($292 million) of bonds maturing through January 2020, the data show. Its 500 million kroner notes due February 2017 are indicated at 21 percent of face value, down from 96 percent at the end of last year, according to Bloomberg data.