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    Viking Supply Ships completes restructuring agreement

    Company News // August 30, 2016

    Referring to earlier announcements related to the financial restructuring of Viking Supply Ships (VSS), the company says it has reached an agreement with a committee representing a majority of outstanding bonds. Subject to approval of the proposal at a bondholders meeting, this finalizes the financial restructuring of VSS. "Furthermore," said the company, "the senior lenders are all positive to the agreement, subject to final approval from credit committees."

    The agreement will provide the company with a stable financial platform to 2020. The restructuring will allow the company to increase focus on optimizing its operations and take full advantage of future commercial opportunities within the company’s core business areas.

    The agreement includes the following key terms:
    • VSS' bank facilities of US$215 million are extended until 31 March 2020
    • Restructuring of certain charter party arrangements
    • 50 per cent of the outstanding face value of bonds will be converted to quoted class B shares in VSS' parent company, Viking Supply Ships AB, at SEK 1.5 per share, the bonds being valued at 55 per cent of par.
    • The remaining 50 per cent of the outstanding bonds will be redeemed in cash at a price corresponding to 35 per cent of par.
    • The interest-bearing debt in VSS AB is reduced by approximately US$50 million, of which reduction in VSS accounts for approximately US$43 million.
    • VSS AB will complete an equity issue of minimum US$25.2 million, of which the majority shareholder Kistefos AS will subscribe it’s pro-rata share. In addition, equity of US$6.6 millionwill be issued in exchange for said bonds.

    VSS will convene a bondholders’ meeting for bondholders in ISIN NO 001 0638158 - FRN Viking Supply Ships A/S Senior Unsecured Open Bond Issue 2012/2017 to propose the amendments to the bond agreement.

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