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 remains 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”). On 14 April 2020 the Company entered into a forbearance and deferral agreement with the AHC (“Forbearance Agreement”) until 18 May 2020, in relation to payments of (i) amortisation, interest and commitment fees due under the Bank Vessel Facility and RCFs and (ii) coupon payments due under the Bonds (together, the “Relevant Payments”).
The Company has entered into an agreement with the AHC extending the Forbearance Agreement to 15 June 2020 (subject to the satisfaction of standard conditions) (the “Forbearance Agreement Extension”). The Company will not make the Relevant Payments at the present time and the Forbearance Agreement Extension will provide all parties with sufficient time to negotiate terms with its stakeholders for a longer-term solution for the Company.
The Company is also pleased to confirm that it has commenced discussions with an ad hoc committee of holders of the 2L Bonds.
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 earnings accounts remain blocked, however arrangements are being made such that certain expenses related to the Endurance and the banks collateral should be covered by proceeds in the blocked accounts. 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 Group’s vessels and business continue to operate as normal.
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