Songa asks holders for one-year payment deferral under bonds due 2020

By Susanna Moon

Chicago, Dec. 2 – Songa Offshore SE summoned bondholders to a meeting Dec. 16 in Oslo to ask for changes to its NOK 1.4 billion senior callable bond issue 2011/2020.

The proposed changes include deferring the NOK 466.5 million installment due May 2018 by 12 months and resetting the interest rate to 10½% during the deferral period, according to a company announcement.

Holders of more than two-thirds of the voting bonds have agreed to vote in favor of the proposed amendments, the company said.

In addition, the company said it has agreed with Perestroika AS that the first installment of $16.7 million of the shareholder loan due June 2018 will be deferred by 18 months with a reset of the interest rate on similar terms during that deferral period.

“The background for the proposal is to strengthen the issuer’s liquidity and increase the overall financial flexibility in 2018 and 2019,” according to a notice by Nordic Trustee ASA.

Songa is an offshore drilling company based in Oslo and Limassol, Cyprus.

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