OSA Goliath trustee eyes OK of vessel recovery plan, bond issuances

By Caroline Salls

Pittsburgh, March 13 – OSA Goliath Pte. Ltd.’s bond trustee is proposing a vessel sale recovery plan that includes the issuance of recovery bonds and tap liquidity bonds, according to notices from trustee Nordic Trustee ASA.

Nordic Trustee said it is proposing a vessel recovery plan involving a sale of the vessel in the Bahamas, a simultaneous transfer of the vessel to a Singapore special purpose vehicle controlled by the trustee on behalf of the bondholders and the issuance of recovery bonds by the special purpose vehicle.

Under the proposal, OSA would make an offer to existing senior secured bondholders to participate in a tap issue of $6 million liquidity bonds.

The tap liquidity bonds will fund the working capital requirements of OSA, including the company’s day-to-day management and operations and the OSA Goliath vessel, as well as to fund costs related to the judicial sale of the vessel in the Bahamas.

The recovery bonds will be issued in an amount equal to the outstanding face amount of OSA senior secured and liquidity bonds.

The trustee said the special purpose vehicle will issue senior secured bonds in an amount equal to a minimum of the vessel transfer price and a maximum of $220 million.

Interest on the special purpose vehicle senior secured bonds will be 12%, and interest on special purpose vehicle liquidity bonds will be 15%.

If no acceptable third-party offer is received for the vessel in the proposed sale process, the trustee will submit a secured credit bid on behalf of the bondholders.

Holders of bonds issued under a liquidity bond agreement will have a right of first refusal for the tap offer.

The subscription period for all of the bonds will end on March 31, with settlement expected on April 8.

The minimum subscription amount for the tap bonds will be $200,000, and the bonds will be issued in increments of $100,000 thereafter.

Pareto Securities Pte. Ltd. and Pareto Securities AS are the arrangers for the bond issues.

A bondholders’ meeting is scheduled for March 27 to consider the trustee’s proposal.

OSA Goliath is a subsidiary of offshore oil engineering services company Oceanografia SA de CV.

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