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    Sea Trucks Group contemplating bond issue

    Company News // March 13, 2013

    Sea Trucks Group Limited is contemplating an issuance of senior secured bonds. The intention of the issue is to provide an effective financing to enable Sea Trucks to pursue its strategic objectives, in which context Sea Trucks intends to replace its existing senior loan and the outstanding US$200,000,000 Secured Pre-QPO Convertible Guaranteed Bonds due 2015.

    Sea Trucks said it has experienced strong growth in recent years and is keen to consolidate its position as the contractor of choice for oilfield services in the markets in which it operates. Central to this strategy is the completion of its new-build program for additional vessels.

    Sea Trucks said believes that the terms of the Convertible Bonds and the Senior Loan restrict Sea Trucks’ ability to achieve its strategic goals. Moreover, accelerated amortisation of the Senior Loan over recent years has resulted in a loan to value security ratio which Sea Trucks considers inefficient.

    Sea Trucks has considered a number of refinancing opportunities and has determined that a new senior secured bond issue represents the most appropriate strategy to obtain secured financing, on terms which permit Sea Trucks to pursue its strategic objectives.

    Accordingly, Sea Trucks is contemplating a new bond issue in parallel with a process to redeem the Convertible Bonds early, whereby the proceeds of the new bond would be used, in part, to fund the accelerated redemption of the Convertible Bonds.

     

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