| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Sea Production Ltd. > News item |
Sea Production seeks waiver for redemption obligation due to buyout
By Susanna Moon
Chicago, Dec. 18 – Sea Production Ltd. is asking for a waiver for the redemption obligation under its senior secured callable bond issue 2007/2012.
The issuer is obligated to redeem the notes because of a change of control that occurred when a Singapore company named FARO III Pte. Ltd. acquired all the shares of Rubicon SP Holdings Ltd., the issuer’s parent company, from Rubicon Offshore International Holdings Ltd. on Dec. 1.
As a result, FARO became the indirect owner of more than 50% of the outstanding shares of the issuer, according to a notice by Nordic Trustee AS.
Specifically, the issuer is asking by way of written resolution to void the obligation to redeem the notes at 101% as a result of the change of control.
In return for the needed majority of consents, the issuer is offering to cover the costs of the trustee and adviser fees, as well as to cooperate with the trustee and its legal advisers in providing consultation and “reasonable access to information and documentation.”
As announced Oct. 10, noteholders voted unanimously to extend the maturity of the bonds to Nov. 13 from Oct. 13.
The bondholders also waived any event of default related to the failure to repay the bonds on the current maturity date.
The trustee previously said, given the current difficult trading environment in the offshore sector, the company believes it is important to keep its FPSO Front Puffin on-hire and in operation in order to facilitate the repayment and/or refinancing of the bonds.
Nordic Trustee said keeping the Front Puffin online will allow for a more certain review of Sea Production’s financial position and a determination of an appropriate medium- to long-term solution for the bonds.
Sea Production makes floating production storage and offloading units and floating storage and offloading units. The company is based in Oslo.
© 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.