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.