Floatel International: Update regarding standstill and discussions with secured financial creditors
2020-04-14
The Company is the Issuer under the 9 % senior secured USD 400,000,000 1st Lien bonds 2018/2024 with ISIN NO001 0833775 (the "1L Bonds") and the 12.75 % USD75,000,000 2nd Lien bonds 2018/2024 with ISIN NO001 0833783 (the "2L Bonds" and together with the 1L Bonds, the “Bonds”). The Company is also the borrower under a USD 150,000,000 term loan facility (the “Bank Vessel Facility”) and under revolving credit facilities for an undrawn total amount of USD 100,000,000 (the “RCFs”, together with the Bonds and the Bank Vessel Facility, the “Finance Documents”).
The Company is in constructive negotiations with all lenders under the Bank Vessel Facility and the RCFs (the “Lenders”) and an ad hoc committee of holders of the 1L Bonds holding in aggregate over 56% of the outstanding amount of 1L Bonds (the “AHC”). Today the Company entered into a forbearance and deferral agreement with the AHC (“Forbearance Agreement”) for thirty-five days (subject to the satisfaction of standard conditions) in relation to payments of (i) amortisation, interest and commitment fees due under the Bank Vessel Facility and RCFs in the aggregate amount of USD 17,028,102 and (ii) coupon payments due under the Bonds in the amount of USD 22,781,250 (together, the “Relevant Payments”). Negotiations are ongoing with the Lenders to finalise the terms of a deferral agreement in respect of the Bank Vessel Facility and the RCFs (conclusion of which is a condition to ongoing forbearance by the AHC under the Forbearance Agreement) and the Lenders have confirmed in writing that they remain supportive of the Group and do not intend to take any further action at this time.
The Company will not make the Relevant Payments at the present time and the Forbearance Agreement and deferral agreement (to be finalised with the Lenders) will provide all parties with sufficient time to negotiate terms with its stakeholders for a longer-term solution for the Company.
As part of the discussions with the Lenders under the Bank Vessel Facility, the Lenders have blocked certain earnings accounts related to Floatel Endurance (the “Blocked Accounts”). However, the Group’s vessels and business continue to operate as normal.
Attached is a presentation with an update from the Company.
For further information, please contact:
Peter Jacobsson, CEO, Floatel International AB – Tel: + 46 31 352 07 00; Mob: +46 76 856 36 18
Tomas Hjelmstierna, CFO, Floatel International AB – Tel: + 46 31 352 07 00; Mob: +46 70 261 09 01