Dubai’s Polarcus asks for holder OK to place NOK 330 million of stock

By Susanna Moon

Chicago, Feb. 13 – Polarcus Ltd. said it is asking noteholders to consent to its NOK 330 million private placement of stock.

The company will ask for approval at a meeting set for Feb. 27 in Oslo.

Specifically, the company is seeking to modify the debt covenants under its 8% senior unsecured callable bond issue 2013/2018 and floating-rate senior unsecured callable bond issue 2014/2019.

Polarcus plans to issue NOK 330 million of shares in a private placement, with proceeds to be used to strengthen its financial position.

The placement is contingent on bondholders approving an amendment to the minimum equity ratio being reduced to 20% from 25% and multi-client assets being included in the calculation of the minimum equity ratio, according to a company announcement.

The amendment to the minimum equity ratio covenant mirrors that of the company’s $410 million fleet bank facility, the release noted.

The bank facility amendments also include the following:

• No amortization until Jan. 1, 2019;

• Extension of the cash sweep until Jan. 1, 2019;

• Debt service ratio covenant with maximum 1.25 times for 2017 and 2018 and 2 times beginning 2019 and proceeds of private placement and subsequent offering being counted as EBITDA for purpose of calculating DSR; and

• Enhanced security including $6 million into retention account for future installments.

The company also needs to secure approval from DNB Bank ASA to extend $25 million working capital facility by one year to July 1, 2019.

The placement also requires shareholder approval at a meeting.

ABG Sundal Collier ASA is the financial adviser.

To form a quorum at the meeting, at least half of the voting bonds must be represented. To pass, at least two-thirds of the voting bonds represented must vote in favor.

Polarcus is a Dubai-based marine geophysical company specializing in high-end towed streamer data acquisition.

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