By Caroline Salls
Pittsburgh, Dec. 17 – World Wide Supply AS 7¾% senior secured callable bondholders are prepared to make a share acquisition offer to the company as an alternative to enforcement of bond defaults that would likely lead to insolvency proceedings, according to a notice released by bond trustee Nordic Trustee ASA.
The trustee said holders of 65.7% of the outstanding principal amount of the bonds propose that NT Refectio XIV AS wholly owned subsidiary WWS Recovery AS offer to acquire a minimum of 51% of World Wide Supply’s outstanding shares.
NT Refectio is a company set up by the bond trustee through Stiftelsen NTM Refectio to secure recovery for the bondholders.
The proposed acquisition price will be a price per share equal to $1 million divided by the shares if acceptances are received for more than the threshold amount but less than two-thirds of the shares. If acceptances are received for two-thirds of the shares but less than 90%, the price per share will equal $1.5 million divided by the shares. If acceptances for 90% of the shares are received, the price per share will be $1.75 million divided by the shares.
If the minimum threshold is not met, the trustee said the bonds would be accelerated, leading to zero recovery for shareholders.
According to the notice, additional funding will be required for the proposed transaction.
The funding structure will include the issuance by WWS Recovery of up to $5 million of five-year liquidity bonds through a first tranche, with an option to issue up to $20 million of the bonds through one or more tap issues.
Interest on the liquidity bonds will be 18%, which can be paid in kind at WWS Recovery’s option.
The minimum subscription amount for the liquidity bonds would be $200,000. The bonds will be sold at par, with a Dec. 21 settlement date.
DNB Bank ASA is the paying agent.
A bondholders meeting is scheduled for Jan. 6 for consideration of the proposal and funding mechanism.
World Wide Supply, based in Ulsteinvik, Norway, is an offshore service vessel company providing high quality offshore shipping services for the global petroleum industry.
New issue
| Issuer: | WWS Recovery AS
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| Issue: | Liquidity bonds
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| Amount: | $5 million first tranche, option for $20 million
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| Coupon: | 18%
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| Maturity: | Five | years
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| Agent: | DNB Bank ASA
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| Price: | Par
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| Pricing date: | Dec. 17
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