Floatel fails to form quorum, calls second meeting of 8% bondholders

By Angela McDaniels

Tacoma, Wash., June 11 – There were not enough holders of Floatel International Ltd.’s 8% senior secured callable bonds due 2017 present at the June 11 meeting to form a quorum, so the company will hold a second bondholder meeting in Oslo at 3 a.m. ET time on June 25, according to a notice from bond trustee Norsk Tillitsmann ASA.

As previously reported, the company began soliciting consents on May 27 to accelerate the maturity of the notes and to amend the call option.

At least half of the bonds had to be represented at the meeting in order to form a quorum. Only 37.46% of the bonds were represented, out of which 66.6% voted in favor of the proposal and 33.4% voted against.

At the June 25 meeting, as long as the holders of more than two-thirds of the bonds represented at the meeting vote in favor of the amendments, those amendments will pass even if less than half of the bonds are represented at the meeting.

If the consent solicitation is successful, the company will make the following amendments:

• Change the maturity date to June 27, 2014;

• Change the repayment amount to 108% of par;

• Replace the existing call option with the option to call the bonds at 108% of par beginning June 16 and shorten the notification period to three business days from 30 business days.

The company said it is in the process of entering into a term loan in order to refinance the bonds and existing credit facilities.

Floatel is a Mölndal, Sweden-based owner and operator of offshore accommodation and construction support vessels.

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