Oslo-listed DOF has completed the issue of new equity and a bond loan, which represent the first steps of its refinancing plan. Major charterers have also extended their contracts on two DOF vessels in the North Sea.
DOF has raised some 1,059,869,852 new shares, each with a nominal value of NOK 0.50 at a subscription price of NOK 1.00.
DOF intends to use the proceeds from the rights issue in excess of NOK 850m ($100.8m) to repurchase bonds in the new subordinated convertible bond loan, which has just been issued with a nominal value of NOK 1,032.5m ($122.4m).
The company said it has repurchased bonds worth a combined NOK 208.9m ($24.8m) in the facility at par value, which is equivalent to around 20% of the bond.
The repurchased bonds will be cancelled and the new outstanding amount under the bond facility will be reduced to NOK 823,640,482 ($97.7m), which will be convertible into a total of 823,640,482 new DOF shares.
Ultimately, all DOF’s bond loans of around NOK 2bn ($237.8m) will be converted to the subordinated convertible bond at 50% of par value.
The refinancing plan, which was approved by DOF bondholders in early July, also aims to reduce the company’s annual costs by between NOK 300m to 400m ($35.7m to $47.6m) by reducing staff, salary and benefits.
Today, the Norwegian offshore support vessel operator also announced that two of its vessels have had their contracts extended in the North Sea.
Maersk UK has extended the charter of DOF’s LNG-fuelled platform supply vessel (PSV) Skandi Gamma until end of 2016.
Another DOF PSV, Skandi Caledonia, has had its contract with with Apache North Sea Ltd extended until mid-January 2017.