Lenders support Prosafe’s refinancing plan

Prosafe, an operator of semi-submersible accommodation vessels, has gained support from its lenders for the proposed refinancing plan announced in July this year. 

Prosafe said on Monday that all lenders of the company’s $1.3 billion and $288 million bank facilities have now confirmed their approval in favor of the refinancing.

With this, the company noted, the refinancing has been supported by all relevant stakeholders and the conditions for the refinancing have been fulfilled.

The company also said it will now proceed with execution of relevant amendment agreements and completion of the refinancing, including (i) issuance of the new shares in connection with the private placement closed on July 12, 2016 and (ii) the conversion of the company’s senior unsecured bond loans to cash, shares, and convertible bonds.

To remind, as part of its refinancing efforts, Prosafe postponed the delivery of its newbuild semi-sub accommodation vessel Safe Eurus, being built by Chinese shipbuilder Cosco.

Prosafe reiterated that, with the completion of the refinancing, the company will have greater financial flexibility throughout the period until the end of 2020, including a solid liquidity buffer to weather a prolonged market downturn.

According to the company, the combined effect of the refinancing improves the company’s 2017 to 2020 cash flow by ca. $1 billion from a combination of new build investment reduction, new equity, amortization holidays, bond conversions and restructuring of the hedge portfolio.

Offshore Energy Today Staff

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