Fairstar Heavy Transport seeks bondholder approval at Nov. 23 meeting

By Jennifer Chiou

New York, Nov. 8 - Fairstar Heavy Transport NV announced a Nov. 23 meeting through trustee Norsk Tillitsmann at which it will ask bondholders for approval on amendments to, among other things, modify the definition of permitted secured indebtedness and grant a waiver for the interest coverage ratio.

The bonds (ISIN: 001 0591332) were issued on Nov. 18, 2010.

Fairstar seeks to modify the definition of permitted secured indebtedness to permit various loans. The company specifically said that it is looking to obtain a new $167 million senior secured credit facility for long-term financing of its vessels and refinancing existing facilities.

According to a Norsk release, the company anticipates that it will have a full-year operating loss for 2011 due to market conditions. That said, Fairstar is seeking the waiver for its interest coverage covenant to avoid any breach.

The company proposes that the ratio be calculated on Sept. 30, 2012 on a rolling 12-month basis with a ratio of no less than 1 times on the first reporting date in 2012 and no less than 2 times thereafter.

Fairstar would also like authorization to have its $10 million loan from ABN Amro Bank NV outstanding.

As consideration for approval, the company is offering to repay the bonds at 102 plus interest at maturity. It would also establish an interest reserve account.

ABG Sundal Collier Norge ASA is the company's financial adviser.

Fairstar Heavy Transport is a Rotterdam, Netherlands-based provider of long-distance ocean transportation services for the offshore and onshore industries.

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