Business
New Debt Deal
New Debt Deal.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2230U\n Gulf Marine Services PLC\n 01 April 2021\n \n \n \n \n 1 April 2021\n \n \n \n \n \n Gulf Marine Services PLC\n \n \n \n \n \n ('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')\n \n \n New Debt Deal\n \n \n \n \n \n GMS, a leading provider of advanced self-propelled, self-elevating support vessels serving the offshore oil, gas and renewables industries, is pleased to confirm that it and all of its banks have executed an amendment to its common terms agreement and related loan documentation to amend certain terms consistent with the term sheet announced by the Company on 16 March 2021.\n \n \n \n \n \n \n Amended Debt Agreement:\n \n \n \nUnder the revised agreement the rate of interest payable by the Company on its borrowings will decrease from LIBOR +5% to LIBOR +3%, retrospectively from the beginning of this year. The reduced interest rate will apply until the end of 2022, after which the existing ratchet will apply.\n \n \n \n \n \n Additional time has been granted to the Company to raise equity or (in the alternative) issue warrants. The previous PIK structure and deadlines for the issuance of warrants to the banks no longer apply; instead, providing the Company raises equity capital of a net $25m or more no later than 30 June 2021 (the \"Equity Raise\"), and raises further equity capital by 31 December 2022, taking the combined fund raising to at least a net $75m, it will not be required to issue any warrants nor will any PIK interest accrue. Any such proceeds raised will be used to reduce the Company's debt liabilities.\n \n \n \n \n \n \n \n \n \n Mansour Al Alami GMS Executive Chairman said:\n \n \"This new agreement with the banks is on vastly improved terms to what was agreed in June last year. As a result, it creates a positive platform on which the future development and growth of the business can be based; allowing the Company to benefit from the pick-up across its core markets.\n \n \n \n \n \n This revised structure provides the time needed to seek to complete the $75m equity raise, as well as review alternative options to optimise the capital structure, including a refinancing, by the end of 2022, should GMS be able to deleverage the balanced sheet and improve its Net Debt to EBITDA profile.\"\n \n \n \...