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American Shipping details Aker offer to purchase PIK floaters at 40
By Jennifer Chiou
New York, Sept. 30 - American Shipping Co. ASA, formerly Aker American Shipping ASA, announced the Sept. 27 start of Aker ASA's offer to purchase all of the company's NOK 1,033,703,743 of senior unsecured callable pay-in-kind bonds due Feb. 28, 2012 at 40% of par as of the last interest date, Aug. 29.
The bonds have a coupon of Nibor plus 475 basis points, and the issue size was originally NOK 700 million. The total outstanding amount includes all pay-in-kind interest.
American Shipping said that Aker, directly or through one of its subsidiaries, will purchase the securities, and holders have until 11:30 a.m. ET on Oct. 10 to participate in the offer. Those interested should contact Pareto Securities AS at 47 22 87 87 70.
As already reported, American Shipping will hold an Oct. 5 meeting in Oslo for bondholders to seek authorization for proposed amendments, including one to extend the maturity date to Feb. 28, 2018.
The company is also looking to holders to authorize it to make interest payments until the extended date in the form of additional bonds.
Loan trustee Norsk Tillitsmann already stated that approval of the changes will entitle participating holders to a flat compensation payment of 0.1% of the principal.
As noted, the company is also looking to have the $80 million equity requirement permanently deleted.
The amendments require the presence of holders of at least two-thirds of the bonds at the meeting and approval from at least half of the amount represented.
American Shipping is a shipping company based in Oslo. Its principal subsidiary has headquarters in Philadelphia.
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