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Atlantica seeks OK to amend BassDrill notes, issue $75 million more
By Angela McDaniels
Tacoma, Wash., Sept. 5 – Atlantica Tender Drilling Ltd. is seeking bondholder consent to amend the terms of subsidiary BassDrill Beta Ltd.’s $75 million 8½% second-lien callable bonds due 2018 and to issue an additional $75 million of the bonds, according to a notice from trustee Nordic Trustee ASA.
If the proposal passes, the Atlantica will assume the rights and obligations as issuer of the bonds, increase the security package to three rigs from one rig, change the interest rate to 8% and extend the maturity to Sept. 23, 2019.
The amended notes would be callable in full for three years at the present value of 103.2% of par plus accrued interest through Sept. 23, 2017 calculated by using a discount rate of 50 basis points over Treasuries. The call price would become 103.2% of par on Sept. 23, 2017, 101.6% of par on Sept. 23, 2018 and 100.8% of par on March 23, 2019.
Upon a change of control, the holders of the amended bonds would have a put option at 101% of par.
DNB Markets and Swedbank Norge will act as managers for the tap issue. The proceeds would be used to partly refinance BassDrill Beta’s $116.7 million of first-priority bank debt.
The company is offering a 6% consent fee.
Holders will vote on the proposal at a meeting at 4 a.m. ET in Oslo on Sept. 19.
At least half of the bonds must be represented at the meeting in order to form a quorum, and the holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal in order for it to pass.
Atlantica said it has obtained pre-acceptance for the proposal from the holders of 68% of the bonds.
Houston-based Atlantica offers solutions to the offshore drilling market with the development of tender assist designs.
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