Floatel International: Restructuring update

Floatel International: Restructuring update

Notice from Nordic Trustee as trustee under 2L Bond Issue

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”).

On 4 June 2020 the Company received the attached notice of event of default and reservation of rights (the “Notice”) from Nordic Trustee AS, the trustee under the 2L Bonds (“2L Bonds Trustee”). The present Notice follows the non-payment by the Company of the coupon due under the 2L Bonds in April 2020 as previously reported. Pursuant to the terms of the Finance Documents the Notice triggers a 180 days standstill period, commencing on the date of the Notice, in relation to any enforcement action by the 2L Bonds. For the avoidance of doubt, the Notice does not constitute an acceleration of the 2L Bonds. The 2L Bonds Trustee has reserved its rights and the rights of the bondholders under the 2L Bonds in relation to any future action in this regard.

The Company remains in constructive negotiations with all stakeholders including, as recently reported, with an ad hoc committee of holders of the 2L Bonds. The Company is of the view that the 180 days standstill period should constitute sufficient time for the Company to negotiate and complete a longer-term financial restructuring solution for 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