Business
New Debt Structure
New Debt Structure.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n RNS Number : 1963I\n Gulf Marine Services PLC\n 31 March 2020\n \n \n \n \n \n \n \n This announcement contains inside information and is provided in accordance with the requirements of Article 17 of the EU Market Abuse Regulation.\n \n \n \n \n \n Gulf Marine Services PLC\n \n \n ('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')\n \n \n \n \n \n GMS Agrees New Debt Structure to Establish Long Term Financial Sustainability\n \n \n \n \n \n Gulf Marine Services announces that it has reached agreement (the \"Agreement\") with its syndicate of banks (the \"Banks\") on heads of terms for the restructuring of its debt facilities, including access to existing term loan facilities and new working capital facilities (the \"Facilities\"). The Agreement is the result of constructive discussions over the past several months and highlights the Banks continued support of the Group and confidence in the business model.\n \n \n \n \n \n The Agreement is a key step towards GMS's objective of achieving a sustainable and delevered capital structure. Specifically, the Agreement provides GMS the financial flexibility to execute its business plan successfully with:\n \n \n \n \n \n · \n Renewed existing term loan facilities with an extended maturity to 30 June 2025; \n \n \n · \n Enhanced liquidity through a new $50m working capital facility;\n \n \n · \n Re-phased amortization requirements;\n \n \n · \n Increased financial covenant headroom; and\n \n \n · \n Incentives to de-lever through a shareholder equity raise, failing which will require the issuance of preferential securities, and/or the incurrence of PIK interest, to the Banks.\n \n \n \n \n \n The Agreement, while legally non-binding, has received approval from the credit committees of all of the Banks. GMS and the Banks are working to finalise the documentation of the Agreement by 30 June 2020. To allow this process time to conclude, the Banks have granted GMS relief under its existing bank facilities in the form of (i) the rollover of certain loans, (ii) the waiver of applicable financial covenant tests and (iii) the deferral of the principal payments due thereunder, in each case from 31 March 2020 until 30 June 2020.\n \n \n \n \n \n The Company intends to seek shareholder approval, when equity markets allow,...