Viking Supply Ships, bondholder group reach restructuring agreement

By Caroline Salls

Pittsburgh, Aug. 29 – Viking Supply Ships A/S reached an agreement with a committee representing a majority of its outstanding bonds that finalizes the company’s total financial restructuring, according to a news release.

In addition, Viking said its senior lenders “are all positive to the agreement, subject to final approval from credit committees.”

The company said the agreement will give it a stable financial platform until 2020. In addition, Viking said the restructuring will allow it to increase focus on optimizing its operations and take full advantage of future commercial opportunities within its core business areas.

Under the agreement, $215 million of bank facilities will be extended to March 31, 2020.

Some charter party arrangements will be restructured

Half of the outstanding face value of bonds will be converted to quoted class B shares in parent company Viking Supply Ships AB at SEK 1.5 per share. The bonds will be valued at 55% of par.

The remaining 50% of the outstanding bonds will be redeemed in cash at a price corresponding to 35% of par.

The interest-bearing debt in the parent company will be reduced by about $50 million, including $43 million related to the subsidiary.

The parent company will complete a minimum $25.2 million equity issue, of which majority shareholder Kistefos AS will subscribe share. In addition, $6.6 million of equity will be issued in exchange for bonds.

Viking said it will hold a bondholders’ meeting shortly to propose amendments to the bond agreement.

Swedbank Corporate Finance is financial adviser to the company.

Based in Gothenburg, Sweden, Viking is an offshore and icebreaking company in the Arctic and subarctic areas, as well as a provider of shipping services between the Baltic Sea and the continent.

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