Singapore’s ASL gets broad support to amend, extend 4¾%, 5.35% notes

By Susanna Moon

Chicago, Jan. 20 – ASL Marine Holdings Ltd. said it secured consents for S$96.25 million principal amount, or 96.25%, of its S$100 million 4¾% series 006 notes due March 2017 and S$48 million principal amount, or 96%, of its S$50 million 5.35% series 007 notes due October 2018.

At the meetings held Friday in Singapore, 98.7% of the votes cast for the 4¾% notes and 100% of the votes cast for the 5.35% notes were in favor of the proposed amendments, according to a company notice.

As announced Dec. 29, the company was asking noteholders to approve a three-year extension of the maturity date, the addition of a call option and mandatory redemption event, amendments to the interest rates, a provision for a form of security to be taken and changes to some financial covenants.

In a separate notice, ASL said that one major condition to draw down up to S$99.9 million under a five-year club term loan facility from local banks has now been met.

The company’s “comprehensive financial restructuring plan” includes a S$25.2 million rights issue in late 2016 that was oversubscribed and allows for more financial flexibility, the release noted.

“The approval of noteholders was vital for us to materialize the financial restructuring plan in such a difficult market,” Ang Kok Tian the company’s chairman, managing director and chief executive officer, said in the release.

Specifically, the company sought to postpone the maturity of the series 006 notes to March 28, 2020 and the due date of the series 007 notes to Oct. 1, 2021.

In return, noteholders will receive a coupon step-up with rates of 5½% and 5.85% beginning March 28 and April 1, respectively, and increased by 50 basis points per year after that.

ASL Marine will also make a mandatory redemption of 2.5% of the original principal amount of each series of notes at par plus accrued interest on every interest payment date beginning Sept. 28, 2017 for the series 006 notes and Oct. 1 for the series 007 notes.

To draw down the term loan, ASL Marine needed to obtain approval from noteholders to extend the maturity dates for the two series of notes by three years or more.

The extraordinary resolution presented at each meeting required a 75% majority of the votes cast in order to pass.

Each meeting required a quorum of two or more persons holding at least 75% of the principal amount of the applicable notes.

United Overseas Bank Ltd. (+65 6539 2126 / 2132, Project.Spring@UOBgroup.com) is the solicitation agent. Tricor Singapore Pte. Ltd. (+65 6236 3550 / 3555, IS.Corporateactions@sg.tricorglobal.com) is the meeting agent.

ASL Marine is a Singapore-based shipping firm.

© 2015 Prospect News.
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