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    Rem Offshore to restructure

    Company News // June 29, 2016

    Rem Offshore has reached agreement in principle with its banks, larger bondholders and main stakeholders to restructure the company.

    The Norwegian owner said the restructuring “will create a financial runway for the company through 2019” even with limited or no utilisation for vessels without long term contracts.

    The restructuring will improve the company’s liquidity by around NKr 3.6 billion over a 3.5 year period and reduce net interest bearing debt by approximately NKr 900 million.

    In a statement, Rem Offshore said: "At the end of 2019, the company will continue to have a strong competitive position, with one of the youngest fleets in the market with an average age of less than nine years,” it said in a statement.

    The restructuring includes new equity, including a private placement of NKr 150 million by the company’s largest shareholder and founder Åge Remøy, which will be used to buy-back part of a bond issue. The company will also consider conducting another equity offering of up to NKr 20 million. On completion of the restructuring, bondholders will own 40 per cent of the shares of the company.

    The company has also obtained support from bondholders in its two bonds, REM04 PRO and REM05. The deal will also result in a substantial dilution of existing shareholders not participating in the new equity, and the contemplated subsequent offering.

    All of the banks involved have in-principle agreed to the restructuring, subject to relevant credit committee approvals and customary closing conditions.

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