Songa Offshore gets bondholder approval to issue stock, convertibles

By Tali David

Minneapolis, Dec. 11 - Songa Offshore SE said there were sufficient bondholders at a Wednesday meeting in Oslo to consider proposed changes to its floating-rate senior unsecured callable bonds due 2015 and floating-rate senior unsecured callable bonds due 2016, according to a notice from trustee Norsk Tillitsmann ASA.

The proposed resolution was adopted after Songa obtained 96.77% of the votes in the 2015 bond issue and 100% of the votes in the 2016 bond issue.

As previously reported, bondholders will have an option to subscribe for $20 million of a subordinated convertible bond as part of the proposal.

The company continues "to face several interlinked financial challenges" and has come up with a comprehensive refinancing plan, which consists of issuing $250 million of equity and up to $150 million of new convertible bonds, subject to shareholder and bondholder approval.

Songa is an offshore drilling company based in Limassol, Cyprus and Oslo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.