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Eitzen doubles offering of 12% bonds to holders of two series due 2015
By Susanna Moon
Chicago, Dec. 15 - Eitzen Maritime Services ASA said it doubled the offering 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.
The loan amount will now be NOK 120 million, up from NOK 60 million, structured as one or more tap issues, according to a company press release.
Eitzen said it held a bondholders meeting and that it signed an amendment to the loan agreement, boosting the maximum amount under the bond loan to NOK 120 million.
Proceeds of NOK 30 million have been secured and will be made available to the company shortly, the release noted. The "new liquidity" will help cover overdue principal and interest for a bond loan and to cover general working capital purposes.
The company said on Oct. 20 that it was offering NOK 60 million of 12% senior bonds due 2014 to the holders of the two series of notes as part of the company's restructuring plan.
Before that, the company said that all of the votes cast at a meeting of bondholders were in favor of the restructuring plan.
Under the restructuring, the company would offer up to NOK 80 million of shares to its existing shareholders in a private placement with proceeds 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 was 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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