BW Offshore, an Oslo-listed provider of floating production vessels for the offshore oil and gas industry, has obtained support from banks for its long term financing plan.
The company on Tuesday said it had received approvals from all of its lending banks to implement the plan introduced in May.
To remind, BW Offshore in May said the financing plan was expected to contribute with more than $500 million in improved liquidity in the period throughout 2020 giving the company a “significant runway until an expected market recovery.”
BW Offshore in May said the financing solution required a raising of $100 million in new equity capital via a fully underwritten rights issue.
To remind, the company on June 9, said the bondholders’ meetings for the company’s outstanding bond loans have already approved the required amendments to the bond loan agreements.
Except for customary conditions precedents with respect to the amendments to the bank and bond loans, the only outstanding condition for implementation of the plan is completion of the $100 million rights issue, BW Offshore said.
The rights issue has been fully underwritten by existing shareholders and a bank syndicate, and the company expects that the rights issue will be completed in July 2016, the FPSO specialist added.
BW Offshore in May posted a net loss of $2.9 million for the first quarter of the year, compared to a profit of $5.8 million in the same period last year. The company’s net debt amounted to $1,631.3 million at March 31, 2016. BW Offshore operates 17 units and the company’s owned fleet consists of 14 FPSOs and one FSO. Average uptime during the first quarter was 97.8%.
Offshore Energy Today Staff