Rubicon Offshore holders vote to waive payments, amend bond terms

By Toni Weeks

San Diego, June 26 - Rubicon Offshore Holdings Ltd. said there were sufficient bondholders present to form a quorum at its June 26 meeting in connection with a proposed waiver of the amortization payments due on June 15 and Oct. 16 for the company's senior secured callable bond issue 2007/2014.

According to a notice from trustee Norsk Tillitsmann ASA, the proposed resolution obtained 98.83% of the votes, and the proposal to waive the payments was adopted.

As previously reported, Rubicon is in restructuring talks with an informal committee of bondholders after failing to make the $15 million April 16 interest payment on its senior secured callable bond issue.

The trustee said in a previous trustee notice that the company does not have enough funds to make the payment. Norsk Tillitsmann also said it agreed to extend the grace period for the payment to June 30.

Amendment terms

Under the adopted proposal, the June 15 and Oct. 16 payments will be waived in exchange for

• An increase in the cash interest rate to Libor plus 1,000 basis points;

• A cumulative 1% increase in both the cash interest rate and the rate of payment-in-kind interest beginning with the October payment date and ending with the earlier of the redemption of the remaining loan in an amount equal to $30 million and the date either the FPSO #1 or FPSO #2 vessel is sold and the loan redeemed;

• An amendment to the cash sweep mechanism under which amounts in excess of $5 million will be applied to the redemption beginning on the January 2013 payment date, subject to a minimum redemption level of $200,000;

• Payment of a 1% restructuring fee;

• A restructuring plan providing for repayment of the loan being submitted to the trustee by Sept. 30; and

• The granting of additional security in favor of the loan trustee.

Rubicon is a Singapore-based offshore oilfield service company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.