Singapore’s Dyna-Mac seeks waivers, amendments to 4¼% notes due 2017

By Tali Rackner

Norfolk, Va., Dec. 7 – Singapore’s Dyna-Mac Holdings Ltd. said it began a consent solicitation for waivers and amendments to its S$50 million 4¼% notes due 2017, according to a notice.

In addition to the waivers, Dyna-Mac is asking for noteholder approval to amend the financial covenants, as follows:

• The consolidated tangible net worth must be at least S$150 million, instead of S$175 million as currently provided; and

• The ratio of consolidated EBITDA to consolidated interest expense must be at least 3 times, provided that it does not breach the trust deed if (a) the interest coverage ratio is less than 3 times for any test period and (b) the company has deposited a further amount of S$1,071,232.88, being the amount roughly equal to the interest payable on the aggregate principal amount of the notes outstanding for one fixed-rate interest period.

The company said that amounts standing to the credit of the interest service reserve account may be applied toward the payment of amounts due on the notes at maturity or on the date of the notes becoming due and payable.

Also, the definition of test period will be deleted and changed to mean each period of 12 months on a rolling 12-month basis ending on the last day of each financial quarter of the group.

Dyna-Mac will pay a consent fee of 25 basis points for consents delivered by the early deadline of 9 p.m. ET on Dec. 21 and a fee of 15 bps for consents delivered after that time.

The solicitation ends at 9 pm. ET on Dec. 27.

Oversea-Chinese Banking Corp. Ltd. (65 6530 6353) is the solicitation agent. Deutsche Bank AG, Singapore Branch (65 6423 5982 / 4091 / 8232) is the principal paying agent.

As previously reported, the company failed to obtain waivers and amendments to the notes at a meeting on Dec. 4. The new proposed amendments in the new solicitation are different from those in the first solicitation.

Specifically, the net worth requirements is higher at S$150 million compared to S$120 million; the previous EBITDA to interest expense ratio was simply at least three times; a requirement that the interest coverage ratio for the test period ending on Sept. 30, 2016 will not be less than 1 times has been dropped; and there is no longer a standing to the credit of the interest service reserve account of at least S$2,142,465.76 at the time of the request of the withdrawal of the amounts standing to the credit of the interest service reserve account.

Dyna-Mac is a Singapore-based investment holding company that is engaged in the fabrication and assembly of topside modules for floating, production, storage and offloading vessels and for floating, storage and offloading vessels.

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