Singapore’s ASL works with noteholders to extend two series of notes

Chicago, Oct. 29 – ASL Marine Holdings Ltd. held its second informal meeting with holders of the series 006 notes and series 007 notes issued under its S$500 million multicurrency debt issue program.

An informal volunteer steering committee has been formed, comprising a mix of institutional and individual holders of both series of notes.

The company hopes to amend and extend the series 006 and series 007 notes.

Previously, in January 2017, it obtained noteholder approval for a three-year extension of the maturity date, the addition of a call option and mandatory redemption event, amendments to the interest rates, a provision for a form of security to be taken and changes to some financial covenants.

According to presentation slides from the most recent meeting, ASL Marine is proposing a five-year extension for the series 006 notes to a new maturity date of March 28, 2025. Additionally, the company proposes reducing the par value to S$50,000 from S$250,000. The coupon rate would be reduced from 6% with a 50 basis points additional annual step-up feature currently to a flat 2.5%.

In return, noteholders would receive one warrant for every S$1 principal amount of notes.

The company is also seeking to lift existing covenants.

Similarly, the company is also seeking to extend the series 007 notes by five years to Oct. 1, 2026 from Oct. 1, 2021.

The par value would also be reduced to S$50,000 from S$250,000.

The current 6.35% coupon with 50 bps step up would be amended to a flat 2.5% rate.

Noteholders would also, by this proposal, receive one warrant for every S$1 principle amounts of notes. The same covenants would be lifted.

The company has correspondingly approached banks and requested a reprofiling of their loans, an extension of a working capital line of S$150 million, a reduction in interest rates and a relaxation of some covenants.

The next informal meeting will be held by the end of November, according to the company.

ASL Marine incurred total cash outflows of S$199 million from previous order cancellations, partially necessitating the amendments and extensions.

ASL Marine is a Singapore-based shipping firm.

© 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.