SINGAPORE - ASL Marine will be holding a series of informal clinics for bondholders next week as it seeks consent for certain seek waivers and acceptances.
The informal clinics will be held from Jan 14 to Jan 18, 7pm to 9pm at 8 Wilkie Road, #03-08, Wilkie Edge, Singapore 228095. They are targeted at holders of the marine services company's $100 million of 4.75 per cent notes originally due 2017 and $50 million of 5.35 per cent notes originally due 2018.
For the 2017 notes, ASL Marine is asking bondholders to extend the maturity date by five years, to March 28, 2025 from March 28, 2020. The maturity date for the the 2018 notes will be pushed to Oct 1, 2026, from Oct 1, 2021. The maturity of the notes had already been extended once, in 2017.
The interest on 2017 notes will be raised to 6 per cent from March 28, 2018 until, but excluding, Sept 28, 2018. For the 2018 notes, the coupon between April 1, 2018 and Oct 1, 2018 will be 6.35 per cent.
After that, the interest for both series of notes will reset yearly to be the sum of 3 per cent and an additional coupon rate. The additional coupon will be 0.15 per cent for every $1.0 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) over $65 million, capped at 2.0 per cent. For the purposes of calculating the coupon, EBITDA will be adjusted for other operating income and adding back allowances for doubtful debts, impairments, write-offs and any other non-cashflow items.
The notes will also be subject to a base mandatory redemption of $0.5 million of principal amount on every interest date beginning March 28, 2019 for the 2017 notes and April 1, 2019 for the 2018 notes.
Holders of the 2017 notes will receive 462,500 warrants per $250,000 denomination note, while the 2018 holders will receive 578,125 warrants per $250,000 denomination note. Each warrant is exercisable for five years at a $0.06 per share strike price.
Noteholders who give consent before 5pm on Jan 23, 2019 are eligible for a 0.3 per cent early consent fee. Consent given by Jan 28, 2019 will be eligible for a consent fee of 0.2 per cent.