DOF Group is negotiating with its banks and bondholders to settle on a sustainable long-term financing structure
The bondholders in DOFSUB07, DOFSUB08 and DOFSUB09 bond loans agreed to continue to extend the engagements subject to certain terms and conditions which are deemed beneficial to the bondholders.
For the DOFSUB07 bond, the changes include a 5% PIK interest and a call option at 100% of the nominal amount at any time, and the bond will be redeemed 100% at maturity.
The DOFSUB08 bond’s maturity date will be extended to January 2025 and the DOFSUB09 bond’s maturity date will be extended to May 2025.
DOF Subsea’s largest indirect shareholder Laco agreed to subscribe for US$21M in cash equity as the company also agreed to cancel its treasury bonds.
The final approval of the terms now agreed will be given in a bondholders’ meeting to be held in January 2020.
DOF Group said most banks involved in the refinancing have been amenable but some banks which represent a minority of outstanding loans showed reluctance. The refinancing proposal includes adjustments to the current amortisation profile among others.
DOF ASA is engaged in dialogue with the banks in the DOF Rederi fleet facility with DOF Subsea and financial institutions in Brazil, to discuss adjustments to the current amortisation profile. The Group wishes align, strengthen and support the financial operations throughout the DOF Group structure. DOF Group’s board of directors said it hoped a solution could be obtained by early Q1 2020. The group had earlier secured refinancing in 2016 to the tune of US$447M.
All DOF group companies continue to carry on their business as usual.
Riviera’s Annual Offshore Support Journal Conference is the premier conference for the global offshore support industry delivering the latest industry data and expert analysis of key trends on 5-6 February 2020 in London. Book your ticket now