Singapore’s Ezra solicits consents for S$150 million notes due 2018

By Wendy Van Sickle

Columbus, Ohio, Oct. 17 – Ezra Holdings Ltd. said it began a consent solicitation for its S$150 million of 4 7/8% notes, series 003, due 2018.

The company said in an announcement that it and its subsidiaries are “likely to face strong headwinds in the foreseeable future” and that it has taken steps to evaluate its financial covenants as part of its overall capital management.

Ezra said it has taken steps to develop its subsea services business, but that “the sustained downturn in oil company expenditure continues to result in lower industry activity and the timing of new awards to market remains uncertain.

“Declining charter rates and excess capacity have affected the financial performance and fleet utilization of subsea and offshore players.”

The company is seeking to waive certain breaches or potential breaches of the financial covenants of the notes and occurrence of certain events of default or potential events of default from the financial half-year ended Feb. 29, 2016 through the notes’ maturity on April 24, 2018.

The company called an informal meeting for the noteholders to be given additional information relating to the consent solicitation. That meeting is to be held at 10 p.m. ET on Oct. 24 in Singapore.

The company is offering an early consent fee of S$250 per S$250,000 principal amount to noteholders who deliver or arrange to have delivered on their behalf by the early consent deadline valid instructions to vote in favor of an extraordinary resolution containing the company’s proposal at an upcoming meeting.

The early consent deadline is 5 a.m. ET on Nov. 2.

Those who deliver their consents at the meeting or after the early deadline but prior to the solicitation’s expiration will receive S$125 per S$250,000 principal amount.

The expiration deadline is 10 p.m. ET on Nov. 6.

The meeting for noteholders to vote on the company’s proposal will be held at 10 p.m. ET on Nov. 8 in Singapore.

In order to establish a quorum, two or more people must be present at the meeting representing at least a majority of the principal amount of notes. In order for the resolution to pass, at least 75% of votes cast must be in favor of the resolution.

Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch (656 658-5862 or 656 658-2348) is the issuing and paying agent.

Ezra is a Singapore-based provider of offshore support for the oil and gas industry.

© 2015 Prospect News.
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