Sed Energy Holdings Plc · OSL:ENH
Sed Energy — SeaBird Exploration — Investor Presentation (May 2017)
16 slides from Sed Energy's investor presentation, May 26, 2017
Slide 1: SeaBird Exploration Restructuring presentation
NOT FOR REPRODUCTION OR DISTRIBUTION. THIS DOCUMENT MAY NOT BE DISTRIBUTED IN, OR TO ANY PERSON RESIDENT IN THE U.S., CANADA, AUSTRALIA OR JAPAN OR TO ANY AMERICAN CITIZEN EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. ANY FAILURE TO COMPLY WITH THESE
Slide 2: Important information
Important information This Presentation has been produced by SeaBird Exploration Plc (the “Company” or “Seabird”) with assistance from ABG Sundal Collier ASA and Arctic Securities AS (the “Managers”) solely for use at the presentation to investors held in connection with the proposed debt conversion
Slide 3: Important information con’t.
Important information con’t. IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND IS BEING FURNISHED SOLELY IN RELIANCE ON APPLICABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THE SHARES HAVE NOT AND
Slide 4: Summary of risk factors
Summary of risk factors Investing in equity and/or bonds of the Company involves inherent significant risks. Before deciding whether or not to invest in shares and/or bonds of the Company, an investor should consider carefully all of the information set forth in this presentation and otherwise avail
Slide 5: Table of contents
Table of contents I. The proposed transaction II. Additional risk factors and other considerations THIS DOCUMENT MAY NOT BE DISTRIBUTED IN, OR TO A RESIDENT OF, THE UNITED STATES, CANADA, AUSTRALIA, HONG KONG OR JAPAN OR TO A U.S. PERSON ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER U.
Slide 6: Introduction
Introduction • As a result of significant market uncertainty, contracting lead times, deteriorating orderbook as well as upcoming debt maturities in 2017 and Q1 2018, Seabird has since Q1 2017 facilitated discussions between its stakeholders to find a refinancing solution • Company cash position is
Slide 7: Proposed transaction
Proposed transaction • Downpayment of loan + accrued interest in exchange for MC library (book value per Q1 of USD 2.7m) SBX04 A • 25% of net income from the multi client library to benefit the Tranche B bondholders and Glander • Equitisation of USD 20.2m principal and accrued interest into 58.7% of
Slide 8: Conversion mechanics
Conversion mechanics Debt conversion Conversion price NOK 5.00 USDNOK 8.37 Conversion price USD 0.60 New bond/debt to Glander 5,000,000 New "Claim" debt/lease To be converted Shares SBX04B (inc accrued interest) 24,709,922 4,559,409 20,150,513 33,731,959 58.7% Glander (inc accrued interest) 2,387,80
Slide 9: Liquidity forecast
Liquidity forecast Highly likely that new liquidity is required by early Q3 Key assumptions • Day rate (USDk/day) SBX cash position – 2017: 60 20.0 Contracts needs to be awarded • Utilization (%): 70 by late May/early June to • Active vessels (#) 15.0 impact the cash situation in – 2017: 4.5 August
Slide 10: Conversion of leads have taken more time than expected
Conversion of leads have taken more time than expected 2017 2018 • Assumed 70% J F M A M J J A S O N D J F M utilisation from August on 3 vessels that currently does not have any contracts Aquila Explorer Idle Class Assumed Utilization 0% 0% 0% 0% 0% 0% 23 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % 70 % •
Slide 11: Several leads but timing remains uncertain
Several leads but timing remains uncertain Leads Forecast vs. prob weighted leads 30 BACKLOG/HIGH PROBABILITY LEADS Weighted value Vessel Value Startup Region months USDm Prob. Q2 Q3 Q4 Q3 APAC 5.0 4.6 100 % 2.7 1.8 Q2 EAME 1.0 1.7 100 % 1.7 25 Q2 EAME 0.5 0.6 100 % 0.6 Q3 NSA 2.0 3.7 100 % 3.7 Tota
Slide 12: Table of contents
Table of contents I. The proposed transaction II. Additional risk factors and other considerations THIS DOCUMENT MAY NOT BE DISTRIBUTED IN, OR TO A RESIDENT OF, THE UNITED STATES, CANADA, AUSTRALIA, HONG KONG OR JAPAN OR TO A U.S. PERSON ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER U.
Slide 13: Risk factors
Risk factors ADDITIONAL RISK FACTORS AND OTHER CONSIDERATIONS In addition to the risks set out in the prospectus for the 2015 equity offering, the risks set out below also apply to the current bond issue. Further, any risks to the operations and financial position of the Group set out hereunder or i
Slide 14: Risk factors cont’d
Risk factors cont’d RISKS RELATED TO THE COMPANY’S DEBT The Group will continue to have substantial indebtedness Pursuant to the Company’s debt obligations, including its bonds, the Group will have substantial indebtedness which may limit the flexibility of its operations, its business, its financia
Slide 15: Risk factors cont’d
Risk factors cont’d The bond agreement for the Company’s bonds will contain provisions permitting the Trustee or certain defined majorities to make decisions binding for all bondholders The bond agreement contains provisions for calling meetings of bondholders to consider matters affecting their int
Slide 16: Risk factors cont’d
Risk factors cont’d The enforcement of rights as a bondholder across multiple jurisdictions may prove difficult. The enforcement of rights as a bondholder across multiple jurisdictions may prove difficult. Furthermore, in the event any bondholder’s rights as a bondholder have been infringed, it may
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