Sea Production asks bondholders to again extend maturity, to Sept. 14

By Susanna Moon

Chicago, June 9 – Sea Production Ltd. is asking to again to extend the maturity date of its senior secured callable bonds that were set to mature in 2012, this time until Sept. 14, 2016.

The company will ask for bondholder approval at a meeting set for 10 a.m. ET on June 13 in Oslo.

Under the proposal, interest would accrue at 5% in cash and 7% in-kind, rather than at the rate of Libor plus a margin, according to a notice from bond trustee Nordic Trustee ASA.

“Given the current difficult trading environment in the offshore sector, in order to facilitate repayment and/or refinancing of the bonds, the issuer believes that it is important to have its two vessels, Front Puffin and Crystal Ocean, remaining on-hire and in operations as it would allow for a more certain review of the issuer’s financial position and a determination of an appropriate solution for the bonds in the medium to long term,” the release noted.

To form a quorum, at least half of the voting bonds must be represented at the meeting. For the measure to pass, holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the bonds.

As previously reported, the bonds were originally scheduled to mature in 2012 and have been extended several times, most recently to June 14, 2016 from March 14, 2016.

In addition to the maturity date extension, the company asked bondholders to approve a waiver of any event of default that may have occurred with respect to failure to repay the bonds on the maturity date.

The bonds were issued in 2007 and guaranteed by Puffin Ltd. and Wisdom Shipping (S) Pte. Ltd.

Sea Production makes floating production storage and offloading units and floating storage and offloading units. The company is based in Oslo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.