Floatel seeks holder approval to move up repayment of bonds due 2017

By Angela McDaniels

Tacoma, Wash., May 27 - Floatel International Ltd. is soliciting consents to accelerate the maturity of its senior secured callable bonds due 2017 and to amend the call option, according to a notice from bond trustee Norsk Tillitsmann ASA.

If the consent solicitation is successful, the company will make the following amendments:

• Change the maturity date to June 27, 2014;

• Change the repayment amount to 108% of par;

• Replace the existing call option with the option to call the bonds at 108% of par beginning June 16 and shorten the notification period to three business days from 30 business days.

Bondholders will vote on the proposed amendments at a meeting in Olso on June 11.

At least half of the bonds must be represented at the meeting in order to form a quorum, and the holders of more than two-thirds of the bonds represented at the meeting must vote in favor of the amendments in order for them to pass.

The company said it is in the process of entering into a term loan in order to refinance the bonds and existing credit facilities.

Floatel is a Mölndal, Sweden-based owner and operator of offshore accommodation and construction support vessels.

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