Olympic Subsea announces restructuring plan

The restructuring plan is subject to agreements with the remaining lenders and final agreement being reached with all of its lenders before the end of August 2021.

In an exchange disclosure, Olympic Subsea said the restructuring would provide an extended runway, with no mandatory debt maturities on bank debt until 31 March 2023; financial flexibility: reduced interest costs and reduced fixed amortisation on the bank debt facilities with further principal repayments prior to maturity occurring by a group cash sweep structure; liquidity headroom: sufficient liquidity in excess of agreed minimum cash covenant; bonds: no change is envisaged with respect to Olympic Subsea’s outstanding bonds, and they are expected to be equitised at or prior to maturity as per their current terms.

The Norwegian subsea vessel and services provider said the restructuring agreement is still subject to credit approvals, and final agreement with the supporting lenders and the rest of the bank group, all of which is expected to be reached by the end of August.

It cautioned that until such final agreements are reached, no guarantee can be provided that the restructuring will be completed as described. Until such time that final agreements are reached, Olympic Subsea remains in breach of some of its financial indebtedness agreements, albeit the bank lenders which are supporting the deal have provided waivers of various covenant breaches in anticipation of the restructuring. Olympic Subsea plans to continue business as normal during this final phase of discussions and the implementation process of the contemplated restructuring.

Founder and chairman Stig Remøy is the largest shareholder in Olympic Subsea, which has a fleet of 10 subsea vessels supporting the offshore oil and gas and renewable markets.