Prosafe Bondholders Accept $290 Million Debt-Restructuring PlanBy
Qualified majorities of the company’s four senior unsecured bonds agreed to convert their holdings into convertible bonds and new shares at a meeting in Oslo on Friday, according to a statement. Prosafe said it will complete the refinancing by next month, subject to final approval from banks and shareholders at an extraordinary general meeting on Aug. 23.
The Oslo-listed company will also raise as much as $165 million of new equity to bolster its finances after the collapse in oil prices reduced demand for its accommodation units. In addition to the bonds, Prosafe has about $1.1 billion of available credit facilities expiring through 2022, according to data compiled by Bloomberg.
The plan should give the company enough liquidity to weather further weakness in oil prices, said Tom Hestnes, a portfolio manager at Alfred Berg Kapitalforvaltning AS, which holds 175 million kroner of Prosafe’s bonds and helped negotiate the deal.