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Rubicon Offshore bondholders vote to extend maturity to June 2014
By Marisa Wong
Madison, Wis., April 14 - Holders of Rubicon Offshore Holdings Ltd.'s senior secured callable bonds due April 16, 2014 voted in favor of a resolution to extend the maturity of the bonds to June 16, 2014, according to a notice from trustee Norsk Tillitsmann ASA.
The resolution proposed at Monday's bondholder meeting obtained 97.54% of the votes, and the proposal was adopted.
In addition to the maturity date being reset, the total margin for the interest period beginning April 16 will be increased by 200 basis points for a coupon of Libor plus 2,800 bps.
Also, a restructuring fee of $1,418,481.82, which is 1% of the outstanding amount of the bonds at the restructuring in 2012, will be payable to bondholders on the new maturity date.
As previously announced, the company does not have sufficient funds to repay the bonds at maturity.
According to an April 7 notice from the trustee, the company is discussing a possible restructuring of the bonds with an ad hoc committee of bondholders that holds more than two-thirds of the principal amount of bonds outstanding.
The company requested an extension of the maturity date to allow these discussions to continue.
According to the prior notice, the ad hoc committee indicated its support for the extension subject to two conditions: the company must make the April 16 interest payment and grant a right under which the holders of two-thirds of the bonds are able to terminate the extension.
At least half of the bonds had to be represented at Monday's meeting in order to forum a quorum, and holders of at least two-thirds of the bonds represented at the meeting had to vote in favor of the extension in order for it to pass.
Rubicon is a Singapore-based offshore oilfield service company.
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