Sea Production asks to extend notes due 2012, this time until June 14

By Susanna Moon

Chicago, March 9 – Sea Production Ltd. is again asking for holder approval to amend its senior secured callable bonds originally set to mature in 2012.

This time, the issuer is asking for another extension of the maturity until June 14 from March 14, according to a notice from bond trustee Nordic Trustee ASA.

“Given the current difficult trading environment in the offshore sector, in order to facilitate repayment and/or refinancing of the bonds, the issuer believes that it is important to have FPSO Front Puffin (and if the sale has not yet occurred by the time of the bondholders’ meeting, FPSO Crystal Ocean), remaining on-hire and in operations as it would allow for a more certain review of the issuer’s financial position and a determination of an appropriate solution for bonds in the medium to long term,” the release noted.

As with previous amendments, Sea Production was offering, in return for the needed consents, to cooperate with the trustee and legal advisers and to cover the costs.

The bondholder meeting has been set for March 16 in Oslo.

To pass, the measure requires votes cast in favor from at least two-thirds of the bonds represented at the meeting. To form a quorum, at least half of the bonds must be represented at the meeting.

The bonds were originally scheduled to mature in 2012 and have been extended several times, most recently to March 14 from Dec. 14, 2016.

The company also has chosen to pay the interest due Nov. 14 and Feb. 14 in-kind on the bonds with a pay-in-kind interest rate of 7%.

The bonds were issued in 2007 and guaranteed by Puffin Ltd. and Wisdom Shipping (S) Pte. Ltd.

Under the most recent proposal, interest will accrue at 5% in cash and 7% in-kind, rather than at the rate of Libor plus a margin.

Sea Production makes floating production storage and offloading units and floating storage and offloading units. The company is based in Oslo.

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