Trico extends consent solicitation for 11 7/8% senior notes due 2014

By Devika Patel

Knoxville, Tenn., Dec. 7 - Trico Shipping AS extended its consent and waiver solicitation for its 11 7/8% senior secured notes due 2014, according to an 8-K filed with the Securities and Exchange Commission by parent company Trico Marine Services, Inc.

The offer launched on Dec. 3 and is now set to expire at 5 p.m. ET on Dec. 13, which has been extended from the original expiration time of 5 p.m. ET on Dec. 8. The new record date is Dec. 7.

Trico is seeking consents or waivers from all holders in order to sell two of its vessels, Trico Sabre and Trico Star, for $52.3 million. Proceeds from the sale will be used to repay debt, including the notes and a working capital facility, and enhance liquidity.

The proposed amendments will provide that if $20 million of new commitments are received under the priority credit agreement and other conditions are met, Trico Shipping will apply the entire net sale proceeds to redeem notes and repay debt under its working capital facility. Further, the company would be permitted to incur $20 million of additional secured debt under its priority credit facility.

If those conditions are not met, Trico Shipping would be permitted to retain $20 million of the net sale proceeds for working capital purposes, with the remainder going toward debt repayment.

In either case, 91.64% of the proceeds will go toward redeeming the notes at par plus accrued interest, without paying a make-whole premium, and 8.36% to repay debt under the working capital facility.

Holders will not receive a consent fee.

Deutsche Bank National Trust Co. is the successor trustee to Wells Fargo Bank, NA.

Trico Marine, a marine services company based in the Woodlands, Texas, filed for bankruptcy on Aug. 25 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 10-12653. Trico Shipping is not a debtor in Trico Marine's bankruptcy case.

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