Bondholders have voted to approve DOF’s refinancing plan, which aims to improve DOF’s liquidity position by NOK 4.5bn ($535m) and reduce its net debt by around NOK 2.85bn ($339m).
To do so, the offshore services provider plans to raise up to NOK 1.2bn ($142.7m) in new equity through a rights offering, in which it plans to spend over NOK 850m ($101.1m) in cash to repurchase bonds at 50% discount.
The Oslo-listed company aims to reduce its annual costs by between NOK 300m to 400m ($35.7m to $47.6m) by reducing staff, salary and benefits.
All DOF’s bond loans of around NOK 2bn ($237.8m) will be converted to a NOK 1bn ($118.9m) subordinated convertible bond at 50% of par value.
The refinancing plan will also adjust the secured debt terms in DOF Rederi by reducing installments on 27 vessels by 75% during the current market downturn.
The refinancing excludes Norskan and DOF Subsea, which are 100% and 51% owned by DOF respectively.
