Offshore Shipping Online

A publication for the offshore shipping industry published by Clarkson Research

  • Offshore Intelligence Monthly
  • Menu

    MMA Offshore looking to raise funds via equity offering

    Company News // November 17, 2017

    MMA Offshore Limited has announced a fully underwritten $97.0 million equity raising at an offer price of $0.20 per share.

    The proceeds will be used to, among other things, reduce the company's net debt position and provide a stronger balance sheet.

    MMA’s chairman, Andrew Edwards, said “Following the outcome of a strategic review, the board decided that a combination of an equity raising and amendments to the company’s existing debt facilities was the most appropriate course of action to improve the company’s balance sheet and provide a platform to take advantage of any sustained improvement in industry conditions.”

    As part of the recapitalisation, MMA’s existing lenders have agreed, subject to certain conditions including a minimum amount of $65 million in net proceeds being received by the company on completion of the Offer, to amend the terms of the company’s existing debt facilities by extending the term from existing maturity on 30 September 2019 to 30 September 2021, reducing the interest rate and agreeing to a revised amortisation profile.

    In addition, MMA has committed to further amortisation of A$30 million by 31 December 2018, which is expected to be funded by non-core vessel sales.

    Undertaking a range of other measures, MMA Offshore said it should be in a stronger position to be able to meet its financial commitments and to refinance its debt facilities before maturity in September 2021.

    More articles from this category

    More news