GulfMark cuts multicurrency facility to $100 million, raises pricing

By Wendy Van Sickle

Columbus, Ohio, Dec. 23 – GulfMark Offshore, Inc. halved commitments to $100 million under and increased pricing on its multicurrency credit agreement dated Sept. 26, 2014 with Royal Bank of Scotland plc, according to an 8-K filed with the Securities and Exchange Commission.

The Tuesday amendment also adjusted several covenants.

Changes include:

• Removing interest coverage ratio tests for certain periods;

• Increasing the permissible capitalization ratio;

• Redefining the consolidated adjusted EBITDA calculation to add back certain severance and other costs related to any discontinued operations or vessel redeployment;

• Reducing the threshold in the minimum liquidity covenant to $35 million from $50 million; and

• Adding provisions permitting stacking of vessels if needed;

• Requiring prepayment of loans if quarter end cash on hand exceeds certain thresholds;

• Increasing collateral-to-debt ratio and collateral-to-commitment ratio requirements;

• Providing for additional reporting of financial and other information, including more frequent collateral appraisals;

• Limiting unscheduled capital expenditures or investments, and

• Precluding use of facility funds to acquire a Norwegian Arctic class vessel that is under construction.

The borrower is a Houston-based provider of offshore marine services.

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