Prosafe secures new credit line but suspends dividendsCompany News // January 13, 2016
Prosafe, which operates a number of semi-submersible offshore accommodation units, has obtained amended credit facilities, which it says will provide "increased liquidity, flexibility and headroom."
Prosafe said that, wikth the support of its banks, it has amended its US$1,300 million and US$288 million credit facilities. "The additional liquidity, flexibility and headroom created by the amendments, which cover both covenant headroom and voluntary option to skip two scheduled amortizations, provides Prosafe with increased operational and financial flexibility and makes the company more robust in a challenging market," the company said.
"This allows Prosafe to continue to work proactively with other stakeholders, including clients, lenders and its owners as illustrated by the recently completed private placement of shares and by commercial arrangements with clients."
The company also announced that its long-term dividend policy remains in place, but that "in light of the reduction in industry activity levels, the board has decided to temporarily suspend dividend payments." The board believes that this will be beneficial for the company, from a commercial, financial and strategic perspective, and that it will improve the company’s financial robustness and optionality.
Prosafe said it may also seek to obtain continued alignment of covenants across its financing sources "to allow the company to be in a better position to implement preferred initiatives in this challenging market."