DOF secures $450m loan for restructuring

DOF secures $450m loan for restructuring

DOF ASA’s lending banks have approved a new NOK3.8bn ($450m) senior loan facility for DOF Rederi, as part of the Oslo-listed group’s restructuring plan.

The banks will collectively contribute to reduce DOF Rederi’s and DOF Deepwater’s bank facilities by 75% over a three-year period.

The restructuring, which was announced in June, aims to improve the company’s liquidity by NOK4.5bn ($685m) over a five-year period and reduce net debt by around NOK3bn ($457m).

The subscription period for DOF ASA’s rights issue began this week, in which the offshore services provider plans to raise up to NOK 1.2bn ($142.7m) in new equity, and plans to spend over NOK 850m ($101.1m) in cash to repurchase bonds at 50% discount.

Møgster Offshore, the DOF group’s primary owner, has subscribed for 750m offer shares for a total of NOK750m ($88.8m).

DOF also hopes to reduce its annual costs by between NOK 300m to 400m ($35.7m to $47.6m) by reducing staff, salary and benefits.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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