Trico Shipping extends consent solicitation for 11 7/8% notes due 2014

By Angela McDaniels

Tacoma, Wash., Sept. 15 - Trico Shipping AS extended the consent solicitation for its 11 7/8% senior secured notes due 2014 to 5 p.m. ET on Sept. 15 from 5 p.m. ET on Sept. 14, according to a news release from parent company Trico Marine Services, Inc.

Holders who deliver consents by the deadline will receive a consent fee of $2.50 per $1,000 principal amount of notes.

As of the original deadline, holders of approximately $399.7 million principal amount, or 99.93%, of the notes had delivered consents.

As previously reported, holders of approximately 80% of the notes and Tennenbaum Capital Partners, LLC agreed in principle on Aug. 25 to lend up to $22 million to Trico Shipping, $15 million of which will be lent now and $7 million later. The term loans will bear interest at 13½% and default interest at 15½%.

Trico Shipping expects that the proposed term loans will be secured by a first-priority lien on substantially all of its assets on a first-out basis.

The company's entry into the proposed credit facility is subject to, among other things, receiving the consent of 100% of the holders of the 11 7/8% notes.

Specifically, Trico Shipping is soliciting consents to:

• Modify some covenants, defaults, remedies, definitions and related provisions contained in the indenture governing the notes;

• Waive some defaults and events of default and rescind any acceleration of principal or interest in the event that certain defaults have occurred prior to the proposed amendments becoming operative; and

• Modify some terms in the indenture to permit the incurrence of up to $50 million of additional debt and the granting to lenders under the proposed credit facility, and any additional priority debt, a first-priority security interest in the collateral securing the 11 7/8% notes. This security interest will have a higher priority than that securing the 11 7/8% notes.

The up to $50 million of additional debt includes the proposed credit facility and up to $28 million of additional priority debt, subject to the consent of the lenders under the proposed credit facility and Trico Shipping's existing working capital credit facility.

Trico Shipping said the proposed amendments will allow it to fund operating expenses and other working capital needs without triggering an event of default under the indenture and accelerating the notes.

The solicitation agent for the consent solicitation is Evercore Partners (212 822-7584). The tabulation agent and information agent is Deutsche Bank National Trust Co. (800 735-7777, option 1).

Trico Marine, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-12653. Trico Shipping is not a debtor in Trico Marine's bankruptcy case.

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