GasLog holders unanimously vote to fix financial covenant of floaters

By Susanna Moon

Chicago, Aug. 19 - GasLog Ltd. obtained the needed consents to amend its NOK 500 million of floating-rate notes due June 27, 2018 at the meeting held at 7 a.m. ET on Aug. 16.

There were enough holders to form quorum, and the measure received 100% of the votes cast, according to a notice from bond trustee Norsk Tillitsmann ASA.

As previously announced, GasLog began a consent solicitation on Aug. 2 to amend its recently issued floaters.

After the bonds settled on June 27, the company realized that the bond agreement contains an error - it should say that the EBITDA to debt service covenant does not apply until Dec. 31.

The covenant requires the company to maintain a ratio of EBITDA to debt service, on a trailing four-quarter basis, of at least 1.1 to 1.

The same covenant in the facility agreements for the company's bank loans does not apply until Dec. 31. According to the company, it was stated at the investor meetings and marketing presentation for the bonds that the bond covenants would exactly mirror the corresponding banking covenants.

Bondholders voted at the meeting held in Olso on whether to insert language into the bond agreement that would result in the covenant not applying until Dec. 31.

To form a quorum, at least half of the bonds needed to be represented at the meeting. In order to approve the resolution, holders of at least two-thirds of the bonds represented at the meeting needed to vote in favor of the resolution.

GasLog is an owner, operator and manager of liquefied natural gas carriers based in Monaco.

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