Stolt Offshore completes debt and guarantee refinancingNews // November 12, 2004
The facility, together with existing cash balances, will initially be used to refinance US$280 million of debt under existing term facilities, the largest element of which would have matured in September 2005.
Immediately following financial close, gross debt is expected to be reduced from US$280 million to approximately US$60 million with remaining cash balances of approximately US$75 million (including consolidated Joint Venture balances). In addition, existing secured performance bonds of approximately US$94 million will be refinanced, with other facilities being retired.
Pricing of the facility is based around EBITDA performance of the Stolt Offshore Group and is expected to deliver lower debt service costs in 2005 and beyond.
Stuart Jackson, Chief Financial Officer said "The completion of this refinancing draws to a close the process of balance sheet restructuring which has taken place in 2004. The company now has sufficient guarantee and working capital facilities for the foreseeable future and we are particularly pleased to see long standing bank support, as well as new entrants, providing financing to Stolt Offshore."