Cecon entities request bondholder approval of restructuring proposal

By Caroline Salls

Pittsburgh, Aug. 3 – Cecon ASA and several subsidiaries are asking bondholders to approve a proposed bond restructuring, according to a notice released by bond trustee Nordic Trustee ASA.

In addition to Cecon, the bonds were issued by Cecon 1 AS, Cecon 2 AS, Cecon Shipping 3 AS, Cecon Shipping 1 AS and Cecon Shipping 2 AS.

The trustee said Cecon believes that “the proposal represents the best alternative for the bondholders given the current circumstances,” and it will give the company the time and financial flexibility to move forward with a strategy that benefits all of its stakeholders.

Under the proposed restructuring, senior bonds, excluding the bond loan D tranches other than D1, will be reduced to $170 million and continue on amended terms.

All of the amended senior bonds will bear payment-in-kind interest at a rate of 6%. Tranche B2 and tranche C senior bonds will mature on Sept. 30, 2019, and tranche A and tranche D bonds will mature on June 30, 2020.

As consideration for agreeing to the reduction of the B2 senior bonds and the restructuring, holders of the B2 senior bonds will receive 1.6% of the share capital in new holding company Offshore Holding AS in the form of B shares.

The holders of junior bonds will be equitized in full and receive 65% of the share capital of Offshore Holding.

Restated tranche C senior bonds will include an option to issue up to $35 million in additional tranche C senior bonds to finance the completion of the company’s Hull 718, and restated tranche D senior bonds will include an option to issue up to $180 million in additional tranche D senior bonds to finance the completion of Hull 719.

In addition, Offshore Holding will, through new tranche A senior bonds, have an option to issue up to $10 million in tranche A senior bonds to finance the general lawful purposes of the group.

The tranche A senior bonds will be offered to all senior bondholders.

According to the notice, no new money will be provided as part of the restructuring.

The bondholders meeting is scheduled for Aug. 17.

Cecon is a subsea installation contractor located in Arendal, Norway.

© 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.