Malaysia’s Perisai seeks consents to extend 6 7/8% notes to February

By Angela McDaniels

Tacoma, Wash., Sept. 9 – Perisai Petroleum Teknologi Bhd. subsidiary Perisai Capital (L) Inc. began a consent solicitation for its S$125 million 6 7/8% notes due Oct. 3, 2016, according to a Singapore Stock Exchange notice.

The company is seeking the approval of the holders to

• Waive the non-payment of principal and interest due on Oct. 3, 2016;

• Waive any non-compliance, or potential non-compliance, with the minimum interest coverage ratio covenant for the period ended June 30 and the period ending Sept. 30;

• Postpone the maturity date to Feb. 3, 2017;

• Defer the payment of interest due on the original maturity date to the extended maturity date;

• Delete Perisai Petroleum’s covenant to maintain a minimum interest coverage ratio beginning from the period ending Sept. 30; and

• Waive any non-compliance with the provisions of the notes or the trust deed and the occurrence of any event(s) of default or potential event(s) of default that will or may occur as a result of the non-payment, the covenant breach or the consent solicitation.

Noteholders will vote on the extraordinary resolution at a meeting at 3 a.m. ET on Oct. 3 in Singapore.

Perisai Petroleum said its business has been negatively affected by market conditions in the oil and gas sector. The company is seeking an extension of the maturity date so it can continue working on a long-term proposal to be presented to the noteholders about a further extension of the maturity date.

The minimum interest coverage ratio covenant requires the company to maintain a minimum ratio of EBITDA to interest expense of 3 times at all times. A fall in the group’s net pre-taxation profits resulted in a breach of this covenant for the period ended June 30, and the company said it is unlikely to meet the covenant for the periods ending Sept. 30 and Dec. 31.

The company said that if the extraordinary resolution is not passed, the notes may not be repaid at maturity and an event of default will occur if this default continues to five days.

At least 75% of the notes must be represented at the meeting in order to form a quorum. In order for the extraordinary resolution to pass, it must be passed by a 75% majority.

Perisai Petroleum is a Kuala Lumpur, Malaysia-based company that makes corrosion-control products for the marine and oil and gas industries.

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