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PA Resources seeks to defer October interest on 12¼% bonds, 13½% bonds
By Susanna Moon
Chicago, Sept. 18 – PA Resources AB said it is proposing to defer upcoming October interest payments on NOK 675 million 12¼% senior bonds due April 2016 and SEK 750 million 13½% senior bonds due March 2016 and seeks bondholder approval.
In late September and early October, the company will owe $7 million on its NOK-denominated bonds and $14 million on its SEK-denominated bonds until April 5, 2015.
The company set an Oct. 3 meeting for holders of the NOK-denominated bonds and began a written procedure for the SEK-denominated bonds, which will expire on Oct. 3.
PA Resources is taking the measures in order to preserve liquidity until a long term financing plan can be presented, according to a company press release.
Pareto Securities and Swedbank Norway are the company’s financial advisers.
The company said it has reached a conditional agreement with its largest creditor and shareholder, Gunvor Group, that unpaid interest along with future interest payments on the secured credit facilities be rolled up through March 31, 2015, subject to the bondholders approval.
The deferral allows the company to continue progress on its investment and development plans, the company said.
In late September and early October the company said it has scheduled interest payments on its working capital facility, reserve-based lending facility, NOK bonds and SEK bonds amounting to a total of $22 million.
Given its liquidity position, the company will be unable to settle these interest payments in cash and proposes to defer all interest payments on all its debt facilities.
Credit facilities
In addition, the company said it has $85 million and $28 million, combined SEK 803 million, outstanding to the Gunvor Group under the RBL facilities due December 2015 and WCF facilities due March 2015, both with a coupon of 7.5%.
PA Resources is an oil and gas company based in Stockholm.
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