Sevan Marine bondholders approve early redemption of 9¼% bonds

By Angela McDaniels

Tacoma, Wash., Aug. 4 - Sevan Marine ASA received bondholder approval to redeem its $135 million of 9¼% bonds due 2011 at 102.5 between Aug. 10 and Aug. 27, according to company notice.

Bondholders voted on the proposal at a meeting in Oslo at 5 a.m. ET on Aug. 3. Of the votes cast, 69.55% were in favor of the proposal.

At least half of the bonds had to be represented at the meeting in order to reach a quorum, and holders of at least two-thirds of the bonds represented at the meeting had to vote in favor of the proposal in order for it to pass.

As previously reported, the company plans to refinance the bonds with a new $200 million issue of bonds in order to increase its financial capacity and extend the maturity profile of its debt.

The company said on July 26 that bondholders may purchase an equal amount of new bonds using their old bonds as payment if desired.

Proceeds from the new bonds that are not used to refinance the 9¼% bonds will be used to acquire the remaining 20% stake in FPSO Sevan Hummingbird from a subsidiary of Centrica plc for approximately $39 million.

First Securities AS (+47 23 11 62 73) and Pareto Securities AS (+47 22 87 87 70) acted as the company's financial advisers for the proposal.

Sevan Marine is an Arendal, Norway-based engineering company active in the oil and gas industry.

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