U.S.-based offshore support vessel owner GulfMark Offshore is facing a default on its $13.7 million interest payment, which was due on March 15, after not making the payment on time.
The company’s board decided not to pay on its due date the $13.7 million interest payment on its 6.375% senior notes due 2022.
By doing this, the company has entered into a 30-day grace period to make the payment and if the payment is not made after that period that would constitute a default.
This, in turn, would result in a cross-default under the senior secured, revolving multi-currency credit facility among GulfMark Americas, Inc., as the borrower, the company, as guarantor, a group of financial institutions as the lenders and The Royal Bank of Scotland, as agent for the lenders, and the senior secured revolving credit facility among the company, as guarantor, GulfMark Rederi AS, as the borrower, and DNB Bank ASA, a Norwegian bank, as lead arranger and lender.
Last week, The Royal Bank of Scotland, acting as the agent, extended the revolving multi-currency revolving facility in the aggregate principal amount of $10 million.
The company’s total debt at September 30, 2016, was $473.2 million.