Marco Polo Marine receives consents to ease covenants on 5¾% notes

New York, Sept. 22 – Marco Polo Marine Ltd. said that it received the necessary consents to amend its S$50 million of 5¾% series 001 notes due 2016.

By the early consent deadline of 5 a.m. ET on Sept. 21, holders delivered consents for S$45.25 million, or 90.5%, of the notes, according to an announcement from the company.

Marco Polo Marine began the consent solicitation on Sept. 8.

The company said it was seeking to amend the financial covenants in the notes in order to reduce the requirement for consolidated total equity to S$100 million from S$175 million, raise the maximum gearing ratio to 2.5:1 from 2:1 and lower the required interest coverage ratio to 2.5:1 from 4:1 with the provision that if the interest coverage ratio is less than 2.5:1 but greater than or equal to 1.5:1 the company will be required to deposit the next interest payment with the trustee. A coverage ratio of less than 1.5:1 would breach the covenant.

In addition, the changes would remove PT Pelayaran Nasional Bina Buana Raya Tbk. as a specified “principal company” since it is no longer a subsidiary.

Marco Polo Marine said that the changes will allow it to “ride out the challenging market conditions in the oil and gas sector which may persist on a prolonged basis and to allow the group further access to funding opportunities, if need be.”

The consent fee is 0.4% for consents delivered by the early deadline and 0.2% subsequently.

The solicitation ends at 10:30 p.m. ET on Sept. 27.

DBS Bank Ltd. (+65 6222 4261) and United Overseas Bank Ltd. (+65 6539 2183 or +65 6539 2200) are solicitation agents. Tricor Singapore Pte. Ltd. is meeting agent (+65 6236 3550 or +65 6236 3555).

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.