GulfMark gets forbearance on 6 3/8% notes, extends loan waiver via RBS

By Susanna Moon

Chicago, April 17 – GulfMark Offshore, Inc. has obtained a forbearance agreement Friday from holders of more than half of its 6 3/8% senior notes due 2022 and a waiver extension with Royal Bank of Scotland plc.

Under the notes forbearance, holders agreed to refrain from enforcing or otherwise taking action as a result of the company’s failure to pay interest due March 15, according to an 8-K filing with the Securities and Exchange Commission.

The forbearance will end April 28.

GulfMark also inked a support agreement with RBS as agent for a multicurrency facility agreement dated Sept. 26, 2014.

Under the loan agreement, the agent agreed to waive the defaults and events of default and to forbear from exercising any rights or remedies under the facility as a result of any defaults until April 14 and on Friday the company received an extension until April 28.

On Friday, the company entered into a support agreement for a NOK 600 million secured revolving credit facility agreement dated Dec. 27, 2012 with DNB Bank ASA.

Under the terms, DNB agreed to abstain from exercising any rights or remedies under the facility as a result of defaults until April 28.

As reported, GulfMark decided to forgo paying the $13.7 million interest payment due March 15 and entered into a 30-day grace period to make the payment.

The failure to pay interest constituted an event of default under the notes indenture and, if not cured within 30 days, would result in a cross-default under the senior secured revolving multicurrency credit facility with Royal Bank of Scotland as agent and DNB Bank as lead arranger and lender.

The company said it “is continuing to engage in negotiations and discussions with holders of the company’s indebtedness regarding the terms of a financial restructuring. There can be no assurance, however, that the company will be able to negotiate acceptable terms of a restructuring with its creditors or reach any agreement with respect to such a restructuring.”

Houston-based GulfMark Offshore provides marine transportation services to the energy industry.

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