Fred Olsen holders grant covenant waivers for bond issue at meeting

By Susanna Moon

Chicago, Jan. 26 – Fred. Olsen Energy ASA obtained holder approval for covenant waivers under its bond issue FOE05 at a meeting held Thursday.

The proposed covenant waivers were supported by the needed majority, according to a company notice.

As announced Jan. 5, the company reached an agreement in principle with its larger series FOE05 bondholders to waive the leverage and interest coverage ratio covenants until June 30, 2018.

As compensation for the waivers, the company was offering bondholders a pro rata repurchase of each holder’s bonds at 100% of par for a total purchase price of NOK 75 million, or about 6.82% of the outstanding bonds, plus accrued interest.

Before that, the company said on Dec. 15 that it had planned talks with the bondholders after having reached agreements for the same waivers – and an additional waiver – with the syndicate banks of its $2 billion credit agreement dated June 2014.

Fred Olsen is an Oslo-based offshore drilling rig company.

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