Golden Energy to convert bonds into shares after receiving approval

New York, Dec. 19 – Golden Energy Offshore Service AS said that it received approval from holders of its senior secured callable bonds due Dec. 31, 2017 to convert the debt into shares.

At a meeting held on Dec. 19, sufficient bondholders were present at the meeting to form a quorum and the resolution was supported by 95.42% of the votes, according to an announcement from the company.

The bond agreement will be changed to reflect the requested amendments, Golden Energy said.

As announced on Dec. 5, under the approved proposal, holders will receive one share per 10 bonds for a total of 22,028,447 shares to be allocated pro rata between the bondholders.

The bond conversion would represent about 90% of the 24,476,053 shares.

Holders also are being asked to extend the notes until the conversion date by the long-stop date of Feb. 15.

To pass the measure, Golden Energy needed one-half of the voting bonds to be represented at the meeting and two-thirds of the votes cast to be in favor.

“The dramatic downturn in the offshore market has resulted in rates not sustainable for ordinary debt finance,” according to the notice announcing the request.

The company is asking for the changes in order align the interests of bondholders and the issuer “to create a debt-free company.”

“These steps will increase operational chartering competitiveness and give bondholders a possibility to take direct part in the strategic management of the issuer through the right to vote for representation in the issuer’s board of directors.”

The steps may help to boost the “recovery of the bondholders’ outstanding bonds,” the trustee noted.

The bonds were issued in 2014.

The offshore services company is based in Alesund, Norway.

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