ASL Marine bondholders approve debt extension

SINGAPORE - ASL Marine has received consent from bondholders to extend the maturity dates of their notes, among other changes, at a meeting held on Wednesday (Jan 30), the marine services company disclosed.

The notes are in relation to holders of the firm's $100 million of originally 4.75 per cent notes due 2017, and $50 million of originally 5.35 per cent notes due 2018.

For the 2017 notes, ASL Marine asked bondholders to extend the maturity by five years, to March 28, 2025, from a previously extended March 28, 2020. The interest on the notes was 6 per cent from March 28, 2018, until, but excluding, Sept 28, 2018. From Sept 28, 2018 onwards, the notes will bear a revised coupon comprising a base 3 per cent rate and an additional interest rate based on ASL Marine's earnings.

ASL Marine also sought to delay the maturity of its 2018 notes to Oct 1, 2026, from a previously extended Oct 1, 2021. For the 2018 notes, the coupon between April 1, 2018, and Oct 1, 2018, was 6.35 per cent. From Oct 1, 2018 onwards, the coupon will also be revised to a base 3 per cent rate and an additional interest based on the company's earnings.

In its filing to the Singapore bourse, ASL Marine said noteholders representing about $84.9 million, or 91.75 per cent of the principal amount of its 2017 notes outstanding voted at a meeting held on Wednesday. A total of 367 votes were cast, of which 365 votes, or 99.46 per cent of the votes were made in favour of amending the notes' terms.

Bondholders representing $41.2 million, or 89 per cent of the principal amount of its 2018 notes, outstanding voted at the meeting. A total of 178 votes were cast, of which 174 votes, or 97.75 per cent of the votes, were in favour of the amendments.

ASL Marine shares last traded flat at seven cents apiece on Jan 25.