Golden Close to force conversion on subordinated bonds due 2022

By Susanna Moon

Chicago, Nov. 19 – Golden Close Maritime Corp. Ltd. notified holders that it plans to convert Golden Close Marit Ltd.’s subordinated convertible bond issue 2017/2022.

The effective date for the conversion of all the bonds to shares will be Nov. 26, according to the notice.

For questions, e-mail slst@odflelldrilling.com or ele@wr.no.

The company said on Nov. 7 that it planned to settle $141,872,627.91 of bonds after the sale of its drillship for $262.5 million.

The company said on Oct. 23 that its plans to sell off its drillship constitute a mandatory prepayment event under its 9% senior secured callable bond issue 2014/2019 and its 10% super senior secured open bond issue 2017/2022 and triggers a conversion option under its subordinated convertible bond issue 2017/2022.

On Nov. 7 the company gave a preliminary calculation of the settlement of the super senior and senior bond loans using proceeds of the vessel sale.

The amounts to be distributed under the bond loans are as follows:

• For the super senior bond loan, the outstanding amount is $12,471,773, the interest rate is 10%, the interest amount is $152,432.78 and the total amount is $12,624,205.78; and

• For the senior bond loan, the outstanding amount is $119,405,178, the make-whole rate is 107.28801%, the make-whole premium is $8,702,261.31, the interest rate 8% and the total amount is $129,248,422.13.

As previously announced, the company plans to sell its Deepsea Metro I drillship to an “Asian buyer” for $262.5 million, which requires shareholder approval.

Golden Close signed a memorandum of agreement for the sale of the drillship.

Under the bond loan agreement, in the event of a sale of the drillship the company may exercise an option to convert all outstanding bonds to shares.

After the sale, the company said it will formally notify the trustee of the exercise option and the conversion of the bonds to shares will be completed no later than 10 business days afterward.

Golden Close owns and operates the drillship Deepsea Metro I in Tanzania and Kenya. It is based in Bergen, Norway.

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