AusGroup seeking noteholders' consent to changes while offering higher interest

Facade of Ocean Financial Centre. Noteholders will vote for the extraordinary resolutions at a meeting to be held on Oct 5 at 11am at Ocean Financial Centre.
Facade of Ocean Financial Centre. Noteholders will vote for the extraordinary resolutions at a meeting to be held on Oct 5 at 11am at Ocean Financial Centre.PHOTO: ST FILE

SINGAPORE - Oilfield services provider AusGroup has launched a consent solicitation exercise with noteholders that includes a two-year extension of the notes' maturity date, it said on Tuesday (Sept 13).

AusGroup has S$110 million worth of 7.45 per cent notes due in October this year. These series 1 notes were issued under the group's S$350 million multi-currency debt issuance programme in 2014.

AusGroup is also seeking to obtain a waiver for any non-compliance or potential non-compliance with various provisions of the trust deed notes, as well as to make certain amendments including, but not limited to the deletion of the financial covenants, it said on Tuesday.

In return, AusGroup has proposed to raise the interest rate on the notes to 7.95 per cent per annum with effect from Oct 20, 2016 to Oct 19, 2017, and to raise the interest rate to 8.45 per cent per annum with effect from Oct 20, 2017 to Oct 19, 2018. AusGroup plans to pay the interest on a monthly basis on the 20th of each month beginning on Nov 20 this year instead of semi-annually.

Noteholders will vote for the extraordinary resolutions at a meeting to be held on Oct 5 at 11am at Ocean Financial Centre.