Singapore’s Goliath Offshore seeks approval of $4 million tap issue

By Caroline Salls

Pittsburgh, Feb. 10 – Goliath Offshore Holdings Pte. Ltd. is asking bondholders to approve an up to $4 million tap issuance of additional senior secured bonds to meet the costs related to the company’s NOR Goliath vessel, according to a notice from bond trustee Nordic Trustee ASA.

The trustee said Goliath Offshore continues to explore all options for the charter, sale or other commercial arrangement for the vessel, but there is no agreement for the future sale or employment of the vessel.

While the vessel is laid up, the operating costs, insurance, corporate costs and other costs related to maximizing recoveries for bondholders are expected to be $3.5 million per year.

The proposed tap bonds would be issued in several tranches, with an initial $2 million issuance. The tap bonds will be offered exclusively to existing bondholders, giving them a right of first refusal.

The subscription period will expire on Feb. 21, and the tap bonds are expected to be issued on Feb. 28.

The minimum subscription amount will be $200,000, and the bonds can be purchased in $100,000 increments thereafter.

A bondholders meeting is scheduled for Feb. 21.

In addition, Nordic trustee said the maturity date under the existing bond agreements will be extended to June 11, 2018.

Goliath’s subsidiaries offer marine transportation services. The holding company is based in Singapore.

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