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Olympic Subsea reaches debt restructuring deal

Norwegian offshore player Olympic Subsea has reached an agreement with a majority of its bank lenders for a restructuring of the company’s debt. The company said in an Oslo Exchange filing on Wednesday that the transaction will result in a reduction in annual debt service, a sufficient cash balance, and, in sum, improved financial flexibility.

The deal will see no mandatory debt maturities on bank debt until March 31, 2023, and a reduced interest cost and reduced fixed amortisation on the bank debt facilities.

The company’s bond of NOK300m ($35.2m) will be converted in connection with the restructuring, with the bondholders receiving 22% of the shares in the company. In August, Olympic Subsea secured backing from the majority of its lenders and sold one of its ships in September.

At the end of Q2 2021, the company reported a NOK2.4bn interest-bearing debt related to the long-term financing of the fleet. In addition, the group had net bond obligations amounting to NOK320m and short-term debt of NOK185m.

The restructuring is expected to be completed this month.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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