Singapore’s Marco Polo holders agree to extend 5¾% notes until 2019

By Susanna Moon

Chicago, Oct. 14 – Marco Polo Marine Ltd. said holders approved restructuring its S$50 million 5¾% notes and, as a result, the maturity will be pushed out for three more years until Oct. 18, 2019.

Noteholders of S$44,250,000, or 88.5%, of the notes were represented at the meeting held Friday and 97.18% of the votes cast were in favor of the measure proposed, according to a company announcement.

In return, the company will pay another 1.5% interest per year on the notes and provide security in the form of a second ranking mortgage over the group’s shipyard land in Batam, Indonesia.

The company said on Sept. 21 that it would be unable to repay the notes at maturity on Oct. 18, 2016 and was looking to restructure the notes.

The company also was asking for consents to delete the financial covenants and to add an issuer redemption option that would end April 18, 2019.

As an incentive, the company was offering the 1.5% additional interest beginning on the original maturity date.

“We are extremely grateful for the overwhelming support and understanding shown by the noteholders,” Sean Lee, the company’s chief executive officer, said in the press release. “We are also gratified that noteholders share our confidence in Marco Polo Marine, notwithstanding the challenges in the shipping and offshore marine sectors.”

“We are cautiously optimistic that the group’s sound fundamentals will enable it to ride the economic storms raging in the sector. There are no significant concerns over the group’s business model, financial fundamentals or long-term business viability.”

The company said it “will continue its prudent financial management whilst actively and concurrently seeking business opportunities.”

As announced Sept. 21, the company’s finances have been hurt by the slump in the offshore oil and gas exploration industry with difficulty obtaining financing or refinancing from lenders or access to debt capital markets.

The company said it also would be unable to comply with the interest coverage ratio covenant.

Holders could submit voting instructions until 9:30 p.m. ET on Oct. 11.

Quorum required 75% of the notes represented at the meeting, and the amendments needed to be passed by at least 75% of the votes cast.

The meeting agent is Tricor Singapore Pte. Ltd. (65 6236 3550/3555 or IS.Corporateactions@sg.tricorglobal.com).

The Singapore-based marine logistics group provides ship chartering, ship building, and conversion, repair and maintenance services.

© 2015 Prospect News.
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