Norwegian offshore services provider DOF has announced that it is working on an overall refinancing plan to secure the company with satisfactory financing and liquidity throughout an expected demanding period.
The company has been in dialogue with its senior lenders, larger bondholders and shareholders, as well as prospective new equity investors over the past months.
DOF intends to secure financing through various methods including the issue of new shares and conversion of all outstanding bonds to subordinated bonds.
The transactions are expected to improve the company’s liquidity by NOK4.5bn ($685m) over a 5-year period and reduce net debt by around NOK3bn ($457m).
All relevant banks have in-principle agreed to the refinancing, subject to relevant credit committee approvals and customary closing conditions.