Mime Petroleum seeks minimum liquidity waiver for 10¼% secured bonds

By Mary-Katherine Stinson

Lexington, Ky., Feb. 21 – Mime Petroleum AS and a group of bondholders of its $300 million 10¼% senior secured callable bonds due 2026 (ISIN: NO0011142036) will ask bondholders to waive the minimum liquidity covenants until March 15, according to a notice.

The action, which the bondholders’ group has expressed support for, is part of the strategy to deal with the company’s liquidity gap emerging in March. The company and the bondholders’ group are working on securing funding.

The company stated that agreement has been reached between the company and the bondholders’ group for new financing and restricting of the bonds, but details cannot be shared as alternatives still being evaluated.

In respect to the strategic sales process, the company also reported that Mime’s largest shareholder has not consented to a proposed voluntary transaction supported by the company and the bondholders’ group.

As previously reported, in November, bondholders adopted a proposal to amend the terms of the bonds to grant Mime a temporary call option until June 30 to fully redeem the bonds at 105.125 plus accrued interest and approved the increase of the put option price to 103 from 101 in the event of a sale resulting from the strategic review process as announced Sept. 28.

Mime Petroleum is an Oslo-based hydrocarbon development and production company.

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