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    SeaBird issues convertible loan and restructures debt

    Company News // September 17, 2010

    SeaBird Exploration PLC has announced that it has announced the issuance of a NKr 120 million convertible, non-transferable loan in favour of Perestroika AS as lender with three years maturity.

    The loan may be converted into a maximum of 35,820,895 shares in SeaBird, at any time up to 23rd August 2013 at a price of NKr 3.35 per share. If the parties agree, accrued interest may also be converted into shares in the company at the same conversion price. The loan carries an interest rate of 1 per cent per annum. The loan is unsecured, and is provided for general corporate purposes.

    SeaBird has also announced an offer from a bank consortium with BN Bank as agent to restructure the present bank debt of US$46.9 million as of 30 June 2010 to a repayment profile of five years, with a balloon after two years (September 2012).

    The first quarterly instalment will take place in December 2010. The securities in three 2D seismic vessels are maintained, but with an added security in the nodes and equipment in use on the OBN vessel Hugin Explorer.

    The loan carries an interest rate of three months US Libor plus a margin of 4 per cent per annum, and has normal front end fees.

    The company's CEO, Tim Isden, said: "The Board and Management of SeaBird are very satisfied with this refinancing in place, whereby about US$20 million through the convertible loan has been provided to strengthen the working capital of SeaBird and the instalment profile has been reduced from US$6.3 million to US$2.35 million per quarter."

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