Trico 11 7/8% noteholders consent to amendments, $22 million financing

By Angela McDaniels

Tacoma, Wash., Sept. 21 - Trico Shipping AS received consent from all of the holders of its 11 7/8% senior secured notes due 2014 to amend some of the notes' terms, according to a news release from parent company Trico Marine Services, Inc.

The consents also allowed Trico Shipping to enter into a $22 million senior secured multi-draw term loan financing, which is being provided by holders of approximately 80% of the notes and Tennenbaum Capital Partners, LLC.

The company drew $15 million under the facility on Sept. 21. The remaining $7 million will be available once Trico Shipping meets certain terms and conditions.

The interest rate on the loans is 13½%. The default interest rate is 15½%.

The financing will be used to fund operating expenses and other working capital needs.

The consent solicitation for the notes expired at 5 p.m. ET on Sept. 15.

Holders received a consent fee of $2.50 per $1,000 principal amount of notes.

Trico Shipping solicited 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 $22 million financing and up to $28 million of additional priority debt, subject to the consent of the lenders under the new 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 was Evercore Partners (212 822-7584). The tabulation agent and information agent was 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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