Sea Production gets approval to extend bond maturity to March 2016

By Angela McDaniels

Tacoma, Wash., Sept. 17 – Sea Production Ltd. received bondholder approval to extend the maturity date of its callable senior secured bonds to March 14, 2016 from Sept. 14, 2015, according to a notice from bond trustee Nordic Trustee ASA.

As previously reported, the notes were originally scheduled to mature in 2012 and have been extended several times, most recently to Sept. 14, 2015 from July 14, 2015.

Bondholders voted on the latest extension at a meeting in Oslo on Sept. 17.

There were enough bondholders present at the meeting to form a quorum, and the proposed resolution obtained 100% of the votes cast.

At least half of the bonds had to be represented at the meeting in order to form a quorum, and the holders of at least two-thirds of the bonds represented at the meeting had to vote in favor of the extension in order for it to pass.

As reported on Sept. 10, the company and the charterers of its Crystal Ocean vessel have signed an extension of the existing contract for a further two years at a rate of $31,000 per day. The company’s other vessel, the Front Puffin, remains in a shipyard in Singapore undergoing preparation for its contract with Folawiyo Aje Services Ltd. for deployment off the shore of Nigeria. The vessel is expected to leave Singapore for Nigeria in the fourth quarter. First oil is expected to occur in the first part of the first quarter of 2016.

In consideration for, and as a condition to, the maturity extension being approved by the needed majority of the bondholders, the company agreed to provide cost cover to the bond trustee for its and its legal advisers’ fees, costs and disbursements and will agree to cooperate with the bond trustee and its legal advisers in providing ongoing consultation and reasonable access to information and documentation during the period of the maturity extension. If these conditions are not satisfied, the extension can be terminated.

Sea Production makes floating production storage and offloading units and floating storage and offloading units. The company is based in Oslo.

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