DOF Subsea calls bondholder meetings to extend standstill period

By Marisa Wong

Los Angeles, April 12 – DOF Subsea AS has requested that Nordic Trustee AS summon bondholders’ meetings for its floating-rate senior bonds, issue 2013/2020 (ISIN: NO0010971005), 9½% senior bonds, issue 2017/2022 (ISIN: NO0010788177) and floating-rate senior bonds, issue 2018/2023 (ISIN: NO0010836810), according to a notice.

The issuer is asking holders of the three bond loans to consider the extension of the standstill period initially until May 31 and with a possibility to extend the standstill period on one or more occasions to Sept. 30 with the approval of an ad-hoc committee of bondholders.

The extension would facilitate finalization of negotiation and documentation of the previously proposed consensual restructuring.

A request will also be made to the DOF group’s secured lenders to correspondingly extend the suspension of payments of principal and interest that have been granted by a majority of its secured lenders as necessary to finalize the restructuring.

At previous meetings for the three bond loans held on Feb. 28, bondholders had conditionally approved to extend their waiver from, and suspension of, all payment obligations under each of the bond loans until March 31, with a possibility to further extend the standstill arrangement currently in place to April 30 with the approval of the ad-hoc committee of bondholders.

Discussions and negotiations on the restructuring of the DOF group are progressing, and the group, its secured lenders and the advisers to the bondholders have since the February meetings continued negotiations on an overall financial restructuring of the group, according to the notice.

Further progress has been made in these talks, but there are still some issues that remain to be resolved to achieve an overall consensual restructuring of the group, the company said. Consequently, the company can make no assurances that the parties will agree on terms of a binding restructuring agreement.

The meetings will begin at 7 a.m. ET on April 29.

To approve the proposed resolution for each series, holders representing at least two-thirds of the voting bonds in each issue represented at the relevant meeting must vote in favor of the resolution.

In order to form a quorum, at least half of the voting bonds in each issue must be represented at the relevant meeting.

Further information may be obtained from the issuer’s website, www.dofsubsea.com. Bondholders are also invited to contact either of the company’s financial advisers, ABG Sundal Collier ASA (Ola Nygard at +47 22 01 61 86, +47 41 21 34 10 or ola.nygard@abgsc.no; Magnus Drageset at +47 22 01 61 41, +47 48 01 61 41 or magnus.drageset@abgsc.no) and Pareto Securities AS (Rolf Kristiansen at +47 22 87 87 46, +47 90 85 67 12 or rolf.kristiansen@paretosec.com; Christian Ramm at +47 24 13 21 33, +47 91 78 51 07 or christian.ramm@paretosec.com).

The company also said requests for further information may be directed to DOF Subsea chief executive officer Mons S. Aase (+47 91 66 10 12) and chief financial officer Martin Lundberg (+47 91 62 10 57).

DOF Subsea is a Storebo, Norway-based oil and gas industry services provider.

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