OSX 3 Leasing bondholders to vote on financing, proceeds application

By Caroline Salls

Pittsburgh, July 8 – Holders of OSX 3 Leasing BV’s 13% senior secured callable bond issue 2012/2015 are being asked to approve a proposal related to bridge financing and the applications of Brazilian charter agreement proceeds, according to a notice released by bond trustee Nordic Trustee ASA.

A bondholders’ meeting is scheduled for July 22.

The trustee said $1.75 million in bridge financing was extended to OSX by members of a bondholder committee to meet short-term liquidity requirements. Subject to approval at the bondholders’ meeting, interest on the financing will accrue at a rate of 35%, payable in kind.

In addition, the proposal allows the trustee to apply amounts in receives in connection with the bonds toward repayment of the financing to the extent it is not rolled into any further funding.

According to the notice, Nordic Trustee received the Brazilian Real equivalent of $6 million in proceeds in connection with a charter agreement.

The trustee said the proceeds have been and will continue to be used to be applied toward required payments.

The trustee said additional funding is expected to be needed in the next few months in order to make required payments and, in part, to repay the bridge financing.

The additional funding will be structured as a $10 million new bond loan to be issued by OSX or a third-party special purpose vehicle.

The new loan is expected to be available to all bondholders, subject to a minimum subscription amount. Interest will also be 35%.

The new loan will be the subject of a future bondholders’ meeting summons, the trustee said.

SX 3 Leasing is a subsidiary of OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.

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