Sea Production discusses restructuring, seeks consent to extend bonds

By Angela McDaniels

Tacoma, Wash., Jan. 27 - Sea Production Ltd. wants to extend the maturity of its $130 million of floating-rate senior secured callable bonds to April 13, 2012 from Feb. 14, 2012 while it discusses a possible restructuring of the bonds with an ad hoc committee of bondholders, according to a notice from trustee Norsk Tillitsmann ASA.

The trustee said Sea Production does not have sufficient funds to repay the bonds in full on the current maturity date.

The bondholder committee holds 93.85% of the bonds. It has indicated its support for an extension of the maturity date, but that support is conditional on the company making the Feb. 14 interest payment.

Holders will vote on the extension at a meeting in Oslo at 7 a.m. ET on Feb. 7.

Bondholders will also vote on an amendment to the bond agreement that would facilitate the sale of the M/V Sea Cat, owned by subsidiary Langford Shipping Co. Ltd., for scrap metal for $6.26 million.

The amendment would change the provision that requires the company to redeem $7.5 million of the bonds if the Sea Cat is sold.

Instead, the company proposes that it apply the proceeds of the sale to making the interest payment due on Feb. 14. Any leftover proceeds would be used to redeem bonds at 101% of par.

Finally, the amendment would change the provisions of the bond agreement such that no dividend payment, share repurchase or any other distributions to shareholders may be made before all outstanding amounts under the bonds have been paid in full.

At least half of the bonds must be represented in person or by proxy at the meeting, and at least two-thirds of the bonds represented at the meeting must be voted in favor of the proposal in order for it to pass.

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.