Business
New debt structure
New debt structure.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n RNS Number : 5060P\n Gulf Marine Services PLC\n 10 June 2020\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n 10 June 2020\n \n \n \n \n \n \n \n \n Gulf Marine Services PLC\n \n \n \n \n \n New debt structure provides GMS with secure platform to sustain recovery\n \n \n Gulf Marine Services PLC (\"GMS\" or the \"Company\") announces that it and all of its banks (the \"Banks\") have executed an amendment for its common terms agreement and related loan documentation (the \"Agreements\") to restructure its debt facilities (the \"Restructuring\") which is consistent with the agreement in principle announced by the Company on 31 March 2020.\n \n The Restructuring is designed to provide GMS with a sustainable capital structure which allows the Company to successfully execute its Business Plan and further deleverage the business through cash flow generation. Specifically, this Restructuring comprises:\n \n \n · \n renewed existing term loan facilities totaling US$391 million with an extended maturity to 30 June 2025. The renewed facilities have a re-phased amortization profile, resulting in c. US$136 million reduction in fixed amortization payments through 2022. The cash interest margin is consistent with the prior facilities and is indexed to the net leverage of the Company;\n \n \n · \n enhanced liquidity through a new US$50 million working capital facility that will replace the existing working capital facilities. The term of this facility has also been extended to 30 June 2025; \n \n \n · \n increased financial covenant headroom that provides the Company with greater financial flexibility;\n \n \n · \n if the Company meets certain conditions subsequent, including raising at least US$75 million of net proceeds from an equity capital raise, then no additional interest will be payable by the Company and no equity linked instruments will be issued to the Banks. If these conditions are not met, then PIK interest and contingent warrants may be due to ...