Singapore’s Otto Marine to redeem all S$70 million 7% notes on Oct. 21

By Marisa Wong

Morgantown, W.Va., Oct. 12 – Otto Marine Ltd. said Otto Marine Services Pte. Ltd. will redeem in full its outstanding 7% notes on Oct. 21.

The notes will be redeemed at par plus accrued interest.

In July, noteholders voted in favor of some amendments to the S$70 million of 7% series 002 notes due 2016.

Otto Marine had asked holders for approval to postpone the maturity of the 7% notes to Feb. 1, 2017 from Aug. 1, 2016. The company had also sought to delist the company’s shares from the Singapore Stock Exchange and solicited consents for amendments and waivers related to the proposed delisting.

The delisting proposal consisted of the company making an exit offer of S$0.32 per share in cash for all the issued common shares held by the shareholders.

As a result, the company asked for a waiver of breaches and amendments to the terms of the notes due to the exit offer as well as for the removal of the put option upon the delisting. Instead, the company inserted a new mandatory redemption event for the redemption of the notes within 14 days from the delisting. The delisting date is Oct. 7, according to Wednesday’s redemption notice.

A precondition to the company’s delisting application was for the issuer to set a noteholders’ meeting to obtain consents. The early consent fee deadline was on July 11, and the solicitation ended on July 13.

The company offered an early consent fee of 0.5%, or S$1,250 per S$250,000 principal amount, and a regular consent fee of a one-time fee of 0.3%, as previously announced. The consent fees will be paid on Oct. 21.

The company will redeem the series 002 notes using proceeds of a loan from RHB Bank, as previously announced.

Singapore-based Otto Marine is a shipping-focused offshore marine group that operates offshore support vessels.

© 2015 Prospect News.
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