BassDrill Alpha seeks bondholder OK of restructuring, payment waiver

By Caroline Salls

Pittsburgh, June 21 – BassDrill Alpha Ltd. is asking the holders of its 7½% senior secured callable bond issue 2013/2018 to approve a restructuring proposal, according to a notice from bond trustee Nordic Trustee ASA.

The company is also asking the bondholders to further temporarily waive an interest coupon payment and principal amortization installment due April 5 and to allow BassDrill to access $484,650 of restricted cash from a reserve account to fund payment of operational expenses pending implementation of the restructuring.

The trustee said BassDrill, its shareholders and an informal committee of bondholders entered a restructuring lock-up agreement on May 24.

Under the proposed restructuring, the principal amount and maturity date of the bonds would be unchanged, but amortization payments would be waived and the fixed rate will be set at 0% for the period between the implementation date and the date on which the company’s rig is again under a charter contract for offshore services.

In addition, 85% of BassDrill’s equity ownership will be transferred to the bondholders with the other 15% going to the original shareholders.

Within three months of the implementation date, the company will issue warrants to bondholders.

In connection with the waiver request, the payment date will be waived until the earliest of termination of the lock-up agreement, the implementation date and June 30.

BassDrill is a Norwegian company that plans to construct and own tender assist drilling rigs for the provision of services to oil and gas companies.

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