Rickmers Maritime Trust (RMT) has disclose[ds_preview]d plans for a proposed debt exchange with holders of its 100 mill. SGD (74.2 mill US-$) bond due to mature in 2017.
It is to be carried out via a consent solicitation exercise to exchange the existing principal amount of the bonds for new unsecured 28 mill. SGD. Based on the proposed fixed conversion price, the Perpetual Convertible Securities will initially be convertible into 20% new units of the Trust and is expected to be valued at approximately 40 mill. SGD.
RMT said it has recently appointed PricewaterhouseCoopers Advisory Services to assist in the restructuring of the bonds in light of the present challenging industry conditions that limits RMT’s access to debt and capital markets. The perpetual convertible securities will initially be convertible into 20% of new units of RMT and is expected to be worth around SGD 40m.
In addition, the Trust has received a firm offer letter from the senior lenders of the HSH syndicate (HSH Nordbank and DBS Bank) in relation to a restructured loan facility of up to 260 mill. $ to refinance all of the Trust’s present outstanding debt. The New Facility, if successfully entered into, would extend the maturities of a large part of the Trust’s secured bank debts to the first quarter of 2021.
The Trust has recently appointed PricewaterhouseCoopers Advisory Services Pte. Ltd. to assist in the restructuring of the Notes in light of the present challenging industry conditions that limits the Trust’s access to debt and capital markets.
