Sevan Marine asks 9¼% bondholders for approval to call bonds early

By Angela McDaniels

Tacoma, Wash., July 26 - Sevan Marine ASA is seeking bondholder approval to redeem its $135 million of 9¼% bonds due 2011 early, according to a notice from bond trustee Norsk Tillitsmann ASA.

The early redemption price would be 102.5 plus accrued interest, and the redemption date would fall between Aug. 10 and Aug. 27.

Bondholders will vote on the proposal at a meeting in Oslo at 5 a.m. ET on Aug. 3.

At least half of the bonds must be represented at the meeting in order to reach a quorum, and holders of at least two-thirds of the bonds represented at the meeting must vote in favor of the proposal in order for it to pass.

Bondholders who wish to attend the meeting, either in person or by proxy, are asked to notify Norsk Tillitsmann by 10 a.m. ET on the trading day prior to the meeting.

The company plans to refinance the bonds with a new $200 million issue of bonds in order to increase its financial capacity and extend the maturity profile of its debt.

Bondholders may purchase an equal amount of new bonds using their old bonds as payment if desired.

Proceeds from the new bonds that are not used to refinance the 9¼% bonds will be used to acquire the remaining 20% stake in FPSO Sevan Hummingbird from a subsidiary of Centrica plc for approximately $39 million.

Questions can be directed to First Securities AS (+47 23 11 62 73) or Pareto Securities AS (+47 22 87 87 70), which are acting as the company's financial advisers for the proposal.

Sevan Marine is an Arendal, Norway-based engineering company active in the oil and gas industry.

© 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.