Norwegian seismic vessel player PGS has secured more breathing room with a new $75m loan to partly refinance its existing one due in March 2024.
The Oslo-listed company refinanced earlier this year leaving $138m of the existing loan to be repaid in March 2024, which is expected to be manageable with available liquidity reserve and cash flow generation.
But, in order to “further increase the liquidity headroom and financial robustness” PGS tapped Sculptor Capital Management and Värde Partners for additional financing.
The interest rate of the new is in line with the existing loan of SOFR plus 7%, compared to LIBOR plus 7% currently. The loan should be drawn in the third quarter of 2023 with maturity in December 2026. It comes with a prepayment premium if prepaid before June 2024 and can be prepaid at par thereafter.
At the end of the second quarter, the company had around $1.7bn in assets and a backlog of $341m.
