Prosafe is pleased to announce that it has received support from lenders of Prosafe SE and Prosafe Rigs Pte. Ltd. on a comprehensive and material restructuring of the financial indebtedness of the group (the “Transaction”). The Company has received acknowledgment of credit approval (subject to certain conditions) in support of the Transaction from ca. 79% across the USD 1300 million facility and the USD 144 million facility with additional credit approvals expected by mid-June 2021.
The terms of the Transaction will result in significant de-leveraging of the balance sheet with ca. 75% debt reduction, corresponding reduction in annual debt service, a sufficient cash balance and in sum a significantly improved balance sheet and improved financial flexibility.
Highlights of the proposed financial restructuring:
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Significant de-leveraging: ca. USD 1,100 million of total debt reduction (amount subject to timing of closing and accrued interest to that date). Reinstatement under the USD 1,300 million facility and the USD 144 million facility of USD 250 million and USD 93 million, respectively.
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Significant runway: No mandatory debt maturities until December 2025.
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Reduced interest costs: ca. USD 9 million in annual debt servicing costs post-transaction.
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Financial flexibility: no fixed amortization on the reinstated debt facilities. All principal repayments prior to maturity occurring via a new group cash sweep mechanism.
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Liquidity headroom: Sufficient liquidity well in excess of agreed minimum cash covenant.
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Equitization: ca. USD 1,100 million of debt reduction across the Company’s bank facilities (amount subject to timing of closing and accrued interest to that date), outstanding interest rate swaps, other financial liabilities and contingent liabilities to be equitized at closing into 99% of Prosafe SE equity.
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Implementation: to the extent Prosafe does not receive unanimous support for the restructuring from all stakeholders, the Company intends to implement the Transaction using a Singapore Scheme of Arrangement combined with other arrangements if required. The Transaction will also require approval from the Company’s shareholders in an extraordinary general meeting. Notice of such meeting will be issued in due course.
Jesper K. Andresen, Prosafe’s CEO says, “The support for a comprehensive restructuring from our lenders is a key milestone in the process to implement a sustainable financial solution. We are pleased to have achieved this consensually among our lenders which reflects the strong support we have enjoyed from them throughout the process and which has enabled us to continue our business as usual and protect and generate value. Pending remaining credit approvals and a possible Singapore Scheme of Arrangement combined with other arrangements to complete the implementation, Prosafe will continue to position the company and focus on protecting and creating value for all its stakeholders”.
Source: Prosafe
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