Eitzen offers NOK 60 million of 12% bonds to existing bondholders

By Angela McDaniels

Tacoma, Wash., Oct. 20 - Eitzen Maritime Services ASA is offering NOK 60 million of 12% senior bonds due 2014 to the holders of its fixed-rate senior secured callable bonds due 2015 and floating-rate senior secured callable bonds due 2015, according to a company announcement.

The offering is part of the company's restructuring plan.

As previously reported, all of the votes cast at a meeting of bondholders were in favor of the restructuring plan.

Under the restructuring, the company will offer up to NOK 80 million of shares to its existing shareholders in a private placement. Proceeds will be used to repay outstanding bonds.

Any bonds that are not repaid in cash will be converted into shares equaling up to 95% of the company's post-restructuring stock. The amount will be reduced depending on how many shares are subscribed for in the private placement.

The conversion is expected to take place on Dec. 15.

The new 12% bond issue is fully committed by a group of existing bondholders. Bondholders who would like to participate are asked to contact Stian Winther (+47 22 87 87 73) of Pareto Securities.

Oslo-based Eitzen Maritime Services provides ship supply, ship logistics, crew management and ship brokerage services.

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