Bibby Offshore has reached agreement with noteholders on the recapitalisation of its balance sheet in a deal which will see Bibby Line transfer its entire ownership to noteholders.
A deal was reached with noteholders holding 80% of Bibby Offshore’s £175 million 7.5% senior secured notes due 15 June 2021 where the notes have been valued at £65m, while £50m will be raised through a rights offering to the noteholders.
The recapitalisation will see Bibby Offshore emerge with a debt-free balance sheet, however the company said it will continue to focus on cost reductions and management have taken action to significantly reduce its fixed cost base.
Howard Woodcock, chief executive of Bibby Offshore, commented: “This transaction will result in significant investment flowing into the business and will provide the Group with an excellent and robust financial platform from which to continue to weather current market conditions and to capitalise on future opportunities within the offshore services market as it improves over the medium term. The elimination of our debt service burden, when taken together with the benefits of our cost-saving initiatives, will position our business well to maximise cash flow through the current market downturn.
“We look forward to continuing to provide a high quality, responsive service safely to our customers. We would also like to thank our customers and suppliers for the loyalty and patience they have shown whilst we have worked to complete this transaction, our existing shareholder BLG, for its cooperation and financial support to date, and our noteholders who have agreed to make a significant financial investment in the Group in order to support the business moving forward.”
Earlier in the year, Bibby Offshore was linked with Dutch dredging and offshore services firm Boskalis who have been looking to expand in the subsea sector.