Polarcus sets meeting to amend 2.875% convertibles for April 14

New York, March 26 – Polarcus Ltd. fixed the meeting to amend its $125 million 2.875% secured convertible bonds due 2016 for April 14.

Bondholders will be asked to approve the changes at 4 a.m. ET on that date.

As announced on Wednesday, Polarcus is seeking to extend its convertible bonds in response to the “rapid decline” in oil prices and “cautious spending” by oil companies.

Under the proposed changes, the maturity date of the convertibles would be extended by 24 months to April 27, 2018 from April 2016.

However, unless the maturity of the company’s fleet bank facility is extended, the convertibles will mature two months prior to the maturity of the guarantees issued by the commercial banks securing that facility, currently June 2017. If the lenders have not committed to extend the fleet bank guarantees prior to April 27, 2017, the bond issue will mature on April 27, 2017.

The coupon would be increased to 5.6% from the date of implementation of the amendments. It will be paid quarterly.

The amendments would also introduce quarterly repayment installments of $2.5 million starting in April 2016.

The consent fee will be 1% of par, payable by Dec. 31, 2015 to bondholders registered at the time of payment of the fee.

Polarcus also has secured amended terms to its $410 million fleet bank facility agreement with DnB ASA and DVB Bank SE, Nordic Branch, Garanti-instituttet for Eksportkreditt and Eksportkredit/Eksportfinans ASA, according to a company press release.

The bank facility amendments require changes to the bond issue.

The amendments to the fleet bank facility improve the liquidity position of the company by $59 million, the company said.

Based in Dubai, Polarcus is a pure play marine geophysical company with an environmental agenda, specializing in high-end towed streamer data acquisition.

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