EMS Seven Seas gets needed votes to convert 12% bonds due 2014

By Jennifer Chiou

New York, April 24 - EMS Seven Seas ASA announced that it received affirmative votes from all present holders at its April 24 meeting for its 12% senior unsecured callable bond issue due 2014.

According to a notice by trustee Norsk Tillitsmann, there were sufficient bondholders to form a quorum, and the company obtained approval to issue shares and to have the right to convert remaining bonds into shares.

As reported, based on the company's unaudited Q4 2013 report published in late February, EMS said it needs to restructure its balance sheet by reducing its outstanding debt and payment obligations.

EMS already said it plans to sell shares at a price of NOK 2, which will be payable in cash or with bonds. The cash proceeds from the share issue will be used to repay bonds.

If there are any shares not subscribed for, the company plans to call the bonds at par, with payment made in shares or in cash.

EMS previously stated that it estimates that a minimum NOK 184 million of the bond issue will be repaid or converted into shares in the share issue. After the share issue is completed, any remaining part of the bond issue will be amended into standardized bilateral loan agreements between the company and the applicable bondholder, with inter alia a term of four years and a fixed coupon of about 5%.

Lysaker, Norway-based EMS Seven Seas, formerly Eitzen Maritime Services, provides repair, rescue, certification, insulation and cleaning services to shipowners.

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