Bibby Offshore to leave Bibby Line GroupCompany News // November 29, 2017
Bibby Offshore Holdings Limited has reached a agreement on the recapitalisation of its balance sheet and an injection of equity that will leave it almost debt free. At completion of the transaction, Bibby Line Group Limited will transfer its entire ownership in Bibby Offshore to the group’s noteholders.
Bibby Offshore Holdings Limited said it had reached a comprehensive agreement on the recapitalisation of its balance sheet with noteholders who hold 80% of the £175M (US$233M) 7.5% senior secured notes due 15 June 2021. The notes were issued by its subsidiary Bibby Offshore Services Plc.
The terms of the recapitalisation when implemented will result in the group having a substantially debt-free balance sheet with an equity injection of £50M to enable it to consolidate and expand its position in the offshore inspection, maintenance and repair and construction vessel markets.
Bibby Offshore chief executive Howard Woodcock said “This transaction will result in significant investment flowing into the business and will provide the group with an excellent and robust financial platform from which to continue to weather current market conditions and to capitalise on future opportunities within the offshore services market as it improves over the medium term.
“The elimination of our debt service burden, when taken together with the benefits of our cost-saving initiatives, will position our business well to maximise cash flow through the current market downturn.
“We look forward to continuing to provide a high quality, responsive service safely to our customers. We would also like to thank our customers and suppliers for the loyalty and patience they have shown whilst we have worked to complete this transaction, our existing shareholder BLG, for its co-operation and financial support to date, and our noteholders who have agreed to make a significant financial investment in the Group in order to support the business moving forward.”