Eitzen amends 12% notes to allow tap issues, in-kind interest payment

By Toni Weeks

San Diego, May 30 - Eitzen Maritime Services ASA said that bondholders for the company's 12% senior callable bonds due 2014 approved on May 29 an amendment to increase the maximum amount under the loan to NOK 200 million from NOK 120 million. The amount will be structured as one or more tap issues.

The company also received approval to pay the interest due on April 24 in kind rather than in cash, according to a news release.

With the amendment approval, the allocation of additional bonds will now be carried out as soon as possible. No overdue interest will be calculated on the in-kind interest payment.

The amendment will also allow bondholders meetings to be called with five business days' notice, the release noted.

Eitzen said before the meeting that bondholders representing more than two-thirds of the votes in the loan had committed to vote for the proposal.

Oslo-based Eitzen Maritime Services provides ship supply, ship logistics, crew management and ship brokerage services.

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