Havyard receives OK to amend, extend senior unsecured bonds

New York, March 30 – Havyard Group ASA received the requested support from bondholders to amend its senior unsecured bonds, issue 2014/2017, to extend the bonds and revise interest rates, among other things, according to a notice from trustee Nordic Trustee ASA.

Sufficient holders were represented at a meeting held on March 30 to form a quorum, and 89.21% of the votes were cast on favor.

The resolution required approval of two-thirds of the voting bonds represented at the meeting. To establish a quorum, a minimum of 50% of the voting bonds had to be represented.

Havyard announced the request on March 15.

The company said that it has delivered on its project backlog through 2016 and during the second half of 2016 and into 2017 won several new contract awards.

In addition, on March 1, subsidiary Havyard MMC signed an agreement to merge with First Process. The combined company will be renamed MMC First Process. Havyard Group will hold 75% of the shares in the new company.

Havyard said the transaction is an example of measurements taken to increase its competitive position, though competition remains fierce for new shipbuilding. In order to continue building additional backlog, the company said it believes it will be beneficial to extend any potential refinancing risk beyond the delivery date of potential new shipbuilding contracts currently being discussed.

Specifically, the company proposes that the bondholders approve the following:

• A change to the current installment schedule so that Havyard pays: (a) A one-time installment of NOK 31,414,152 on June 13, 2017; (b) quarterly installments of NOK 2.5 million beginning on March 13, 2018; and (c) the remainder of the outstanding amount in full at maturity;

• An interest increase by 125 basis points to Nibor plus 825 bps, which would be effective beginning March 13; and

• An extension of the bond maturity to June 13, 2020 from 2018.

Financial adviser Fearnley Securities AS (Attn.: Per Lauvang: +47 22 93 6377 or p.lauvang@fearnleys.no) can be contacted for information.

The fully integrated ship technology company’s headquarters are in Fosnavag, Norway.

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