DOF Subsea seeks to extend deferral of payments to March 31

By Marisa Wong

Los Angeles, Feb. 11 – DOF Subsea AS has requested that bond trustee Nordic Trustee AS summon bondholders’ meetings to approve a proposal that would extend the current suspension, deferral and standstill arrangement for three series of bonds.

The three series are DOF Subsea’s floating-rate senior bonds, issue 2013/2020 (ISIN: NO0010971005); $175 million 9½% senior bonds, issue 2017/2022 (ISIN: NO0010788177); and NOK 1 billion floating-rate senior bonds, issue 2018/2023 (ISIN: NO0010836810).

The bondholders meetings are scheduled for 7 a.m. ET on Feb. 28.

The standstill agreement was initially approved at bondholders’ meetings on April 22, 2020 and subsequently extended at meetings held on Sept. 30, 2020, Feb. 1, 2021, June 30, 2021 and Sept. 30.

As of the last meetings on Sept. 30, holders approved an extension of the waiver from and suspension of all payment obligations under each of the bonds until Oct. 31. The meetings also granted an ad hoc group of bondholders the authority to extend that waiver on one or more occasions until Feb. 28, and the ad hoc group has extended the waiver until Feb. 28.

DOF Subsea said discussions and negotiations on the restructuring of the group are progressing and that the group and its lenders have, since the September meetings, continued negotiations on an overall financial restructuring. Further progress has been made in these negotiations, but there are still some issues that remain to be resolved to achieve an overall consensual restructuring, the company said.

As a result, the issuer is requesting that a bondholders’ meeting be summoned for each of the bond issues in order to obtain approval to continue to temporarily suspend and defer payment of principal and interest under the respective bonds until and including March 31. The issuer is also seeking to grant the ad hoc group authority to extend that suspension on one or more occasions until April 30.

The majority existing lenders – existing lenders representing in aggregate more than two-thirds of the aggregate amount of debt owed by the group to all existing lenders – have also been requested to extend the senior standstill agreement until and including March 31.

To approve the proposals for each bond issue, holders representing at least two-thirds of the voting bonds represented at the relevant Feb. 28 meeting must vote in favor of the resolution.

In order to form a quorum, at least half of the voting bonds in each issue must be represented at the relevant meeting.

Further information may be obtained from the issuer’s website, www.dofsubsea.com. Bondholders are also invited to contact either of the company’s financial advisers, ABG Sundal Collier ASA (Ola Nygard at +47 22 01 61 86, +47 41 21 34 10 or ola.nygard@abgsc.no; Magnus Drageset at +47 22 01 61 41, +47 48 01 61 41 or magnus.drageset@abgsc.no) and Pareto Securities AS (Rolf Kristiansen at +47 22 87 87 46, +47 90 85 67 12 or rolf.kristiansen@paretosec.com; Christian Ramm at +47 24 13 21 33, +47 91 78 51 07 or christian.ramm@paretosec.com).

DOF Subsea is a Storebo, Norway-based oil and gas industry services provider.

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