genlou
8 years ago
Reference is made to previous announcements concerning the refinancing (the "Refinancing") of Prosafe SE ("Prosafe" or the "Company") as first announced on 7 July 2016.
The Financial Supervisory Authority of Norway has approved a prospectus prepared by Company covering the following:
Listing of 5,777,439,757 new shares issued as part of the Refinancing, the offering and listing of up to 504,000,000 shares (the "Offer Shares") to be issued in connection with the subsequent repair offering (the "Subsequent Offering") and listing of new convertible bonds ("New Convertible Bonds").
The Subsequent Offering comprises an offering of up to 504,000,000 Offer Shares at a subscription price of NOK 0.25. The Company's shareholders as of 12 July 2016, as documented by the shareholder register in the Norwegian Central Securities Depository (the "VPS") as of 14 July 2016 (T+2)(the "Record Date"), and who are not resident in a jurisdiction where such offering would be unlawful, or would (in jurisdictions other than Norway) require any prospectus filing, registration or similar action, will receive non-transferable subscription rights (the "Subscription Rights") based on their shareholding as of that date ("Eligible Shareholders"). Eligible Shareholders will be entitled to over-subscribe.
Each Eligible Shareholder will be granted 3.56 Subscription Rights for each share registered as held by such Eligible Shareholder as of the Record Date rounded down to the nearest whole Subscription Right. Each Subscription Right will, subject to applicable securities laws, give the right to subscribe for and be allocated one (1) Offer Share. The subscription period for the Subsequent Offering commences on 17 October 2016 and expires at 16:30 hours, Oslo time, on 31 October 2016 (the “Subscription Period”). Please note that Subscription Rights that are not used to subscribe for Offer Shares before the end of the Subscription Period will lapse without compensation and consequently be of no value.
genlou
8 years ago
Conversion of convertible bonds, new shares issued
Reference is made to announcement by Prosafe SE ("Prosafe" or the Company") on 15 September 2016, regarding inter alia the issuance of a new convertible bond loan in the aggregate nominal amount of NOK 81,790,013 against redemption of bonds.
Based on conversion notices received, convertible bonds of nominal value NOK 3,000,000 have today been converted into 12,000,000 class A shares in the Company, based on the conversion price of NOK 0.25 per share. Following the conversion, the remaining outstanding principal of the convertible bond loan is reduced to NOK 78,790,013. The number of outstanding shares in the Company has increased to 6,049,010,116 shares, consisting of 259,570,359 ordinary shares and 5,789,439,757 class A shares.
Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com
Larnaca, 23 September 2016
Georgina Georgiou, General Manager
Prosafe SE
For further information, please contact:
Stig Harry Christiansen, Acting CEO
Prosafe Management AS
Phone: +47 47 80 78 13
Robin Laird, Acting CFO
Prosafe Offshore Services Pte Limited
Phone: +65 81 27 21 01
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 99 10 94 67
To the top
Print print
genlou
8 years ago
All refinancing steps successfully completed
Reference is made to previous announcements concerning the refinancing (the "Refinancing") of Prosafe SE ("Prosafe" or the "Company") as announced on 7 July 2016, and latest the announcement of 19 September 2016.
In accordance with the timetable for the Refinancing, settlement of the remaining bonds forced to cash conversion has been completed. All actions and conditions required for completion of the Refinancing have now been finalised and fulfilled, and the effective date of bond debt discharge and bank amendments has occurred.
For further information on the Refinancing and the detailed terms thereof, including the subsequent equity offering currently expected to be launched by end of September / early October 2016, please see announcement of 7 July 2016 and subsequent releases.
Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com
Larnaca, 22 September 2016
Georgina Georgiou, General Manager
Prosafe SE
For further information, please contact:
Glen Ole Rødland, Interim Chairman
Prosafe SE
Phone: +47 907 41 662
Stig Harry Christiansen, Acting CEO
Prosafe Management AS
Phone: +47 51 64 25 17
Robin Laird, Acting CFO
Prosafe Offshore Services Pte Limited
Phone: +65 81 27 21 01
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 64 25 20
To the top
Print print
genlou
8 years ago
Second quarter and first half report 2016
Operating profit for the second quarter of 2016 amounted to USD 32.5 million and net profit was USD 5.2 million. Utilisation of the fleet was 41 per cent.
Download the Q2 2016 report (PDF, 48 kB)
(Figures in brackets refer to the corresponding period of 2015)
Operations
The fleet utilisation rate in the second quarter of 2016 was 41 per cent (58 per cent).
Safe Boreas commenced the contract with Talisman Sinopec in the UK mid-March and was fully contracted throughout the quarter.
Safe Zephyrus was delivered from the yard in the first quarter of 2016 and received acknowledgement of compliance from the Petroleum Safety Authority Norway, in July. The vessel commenced a contract with Det norske in Norway in late July.
Safe Scandinavia commenced the TSV contract with Statoil in Norway mid-March. Drilling support operations successfully commenced at the beginning of April with a firm contract period until July 2018.
Regalia commenced a contract with Shell in the UK in late May.
Safe Concordia and Safe Caledonia were fully contracted in the quarter.
Safe Bristolia commenced a contract with BG Group in mid-May in the UK for a two-month firm period. This contract has been completed and the vessel is now laid up in Norway.
Safe Notos was delivered from the yard in the first quarter of 2016 and is in transit to Brazil to perform the contract with Petrobras. The vessel is expected to arrive in Brazil early in the fourth quarter of 2016. The Safe Notos contract, as extended, is now for three years plus 222 days and the total contract value is USD 189 million.
Safe Astoria was idle in the quarter and is cold-stacked in Batam, Indonesia.
Safe Lancia is cold stacked in Port Isabel, Texas, USA. The company incurred off-hire and demobilisation costs as well as costs related to the removal of thrusters on the vessel in the second quarter.
Safe Regency has transited from Aruba and is now preparing for lay-up in Curaçao. The company incurred off-hire costs for the vessel in the second quarter.
In June 2016, Safe Britannia was sold for scrap/recycling in the US. The company incurred off-hire and demobilisation costs in the quarter until the vessel was sold.
In August 2016, Jasminia and Safe Hibernia were sold for scrap/recycling in the US. The company incurred lay-up and demobilisation costs in the quarter.
Financials
Revenues for the second quarter of 2016 were USD 115.4 million (USD 92.5 million). This increase reflects that high day rate units have been on contract during the second quarter this year as opposed to last year. This has been partly offset by the closure of the Gulf of Mexico contracts which generated relatively low day rates.
Operating expenses increased slightly to USD 53.8 million (USD 51 million). Cost saving initiatives implemented in 2015/2016 have reduced operating expenses in the second quarter. These savings were offset to a large degree by non-recurring costs relating to the vessels which previously operated in the Gulf of Mexico.
EBITDA increased to USD 61.6 million (USD 41.5 million). This improvement is mainly due to higher average day rates, as described above.
Depreciation increased to USD 29.1 million (USD 18.7 million) mainly due to the new build Safe Boreas and the Safe Scandinavia TSV project. Operating profit was USD 32.5 million (USD 22.8 million).
Net financial expenses for the second quarter were USD 26.4 million (USD 7.0 million) mainly due to currency effects and higher interest costs.
Net profit amounted to USD 5.2 million (USD 12.2 million).
Total assets at 30 June amounted to USD 2,599.7 million (USD 2,241.7 million), while the book equity ratio declined to 26.1 per cent (33.9 per cent). Net interest-bearing debt stood at USD 1,648.5 million (USD 1,123.7 million).
Financial restructuring
On 7 July 2016, the Company announced a proposed comprehensive refinancing. The refinancing included a proposed private placement of minimum USD 130 million and maximum USD 150 million at an issue price of NOK 0.25 per share, and a subsequent equity offering of up to USD 15 million. It was furthermore proposed that NOK 2.4 billion (approx. USD 290 million) in aggregate face value of the Company's outstanding senior unsecured bonds be converted into new shares at 30% of the face value and/or cash at the option of each bondholder.
The combined effect of the reduction in bank debt amortisation from Q1 2017 until and including Q4 2020, and the interest rate swap restructuring is expected to provide a total positive liquidity impact of approximately USD 493 million. There is also a significant financial covenant relief on all facilities to provide the Company with sufficient headroom to operate.
As part of and subject to the refinancing being completed, the Company has agreed with Cosco a deferred delivery of Safe Eurus to Q4 2019 (or such earlier time required by the Company) and a limitation on any further liability in the event Prosafe does not take delivery of the vessel, giving the Company increased flexibility and reduced financing risk. In addition, Prosafe and Cosco have also agreed a deferral of the repayment of the USD 29 million seller's credit to Q4 2019.
On 13 July 2016, the Company announced that it had completed the private placement of new shares. The private placement of minimum USD 130 million and maximum USD 150 million, conducted as an accelerated book-building with preferred allocation for shareholders and bondholders, was fully subscribed. The final amount of new shares to be issued would be determined on the basis of the amount required for the cash-out of bonds under the refinancing.
On 11 August 2016, the Company announced that the bondholders had exercised the cash-out option for NOK 242 million. As per the terms of the proposed refinancing, the clearing price was therefore set to 35% of current face value of the bonds. The difference between NOK 84.7 million (35% of NOK 242 million) and the minimum cash-out amount (NOK 336 million) will be applied for a pro-rata redemption across remaining bonds as part of the refinancing.
Further, based upon received requests from bondholders, the Company will, as part of the refinancing, issue a convertible bond of NOK 82.79 million convertible into 331,163,764 new shares. Adjusted for the cash-out amount and the convertible bond, the remaining bonds will be converted to 1,396,836,250 new shares in Prosafe through a debt to equity conversion. As a result of the minimum cash-out amount being exercised, the Company will issue 4,368,000,000 new shares in the private placement.
The refinancing was approved by the requisite majorities in the Company's bond loans on 12 August 2016. On 23 August 2016 the Extraordinary General Meeting of Prosafe resolved to authorise the issuance of the shares and convertible bonds as described above.
Currently, bank lenders representing 89% (in aggregate) of Prosafe’s USD 1,300 million and USD 288 million bank facilities have confirmed credit approval or agreement-in-principle in favour of the refinancing. The Company is working constructively with the bank syndicate to obtain the remaining credit approvals and secure the required all lender support. The refinancing is expected to be completed by end August / beginning of September 2016.
Reorganisation and rationalisation
As announced on 26 July 2016, as a part of its cost efficiency measures reported in connection with the company's Q1 2016 report, Prosafe is implementing a reorganisation of the group's shore-based business resulting in a leaner organisation around a smaller and partly changed group management team.
The new organisational model of the group is based on the principle of a lean line organisation focusing on the core business of safe and efficient management of the fleet.
The rationalisation is necessary to ensure that the Prosafe group remains competitive in the current difficult market conditions and in a solid position for future growth when the industry starts to recover. The proposed workforce reduction is ongoing throughout the remainder of 2016 eventually achieving a substantial headcount reduction across the group.
The Group's target remains to reduce annual costs by at least USD 30 to 40 million. This should show increasing effect throughout the second half of 2016 as the rationalisation program takes effect and capacity is adjusted to a falling activity level. In addition, the target includes a reduced capex spend noticeably in the near and medium term to protect the financial position.
Outlook
Market outlook remains uncertain in the near term, and although there are a number of prospects, 2017 is expected to be the low point in activity level. In general, the company sees the demand returning more to the traditional demand related to maintenance and modification projects with shorter lead times compared to hook-up projects. Cost reductions in the E&P sector are expected to contribute to more projects becoming economically viable. Combined with continued focus on asset integrity and maintenance on offshore installations, the company expects a gradual market recovery from 2018 onwards.
Prosafe has moved quickly to scrap three vessels and it anticipates that other suppliers’ vessels will be scrapped and/or exit the high-end market of the North Sea. As a consequence of this, the supply-demand environment is expected to become more balanced by 2020. The aforementioned plus the substantial debt reduction, the significantly improved cash flow from the refinancing and combined with Prosafe’s high quality and versatile fleet places the company in a strong position when the market recovers.
Risk
Prosafe’s key risks are described in detail in the Directors’ Report as set out in the Annual Report 2015 and include Prosafe’s main operational risks e.g. day rate level and utilisation rate of the accommodation vessels. The company’s results also depend (inter alia) on operating costs, interest expenses and exchange rates.
Statement from the Board, the Acting CEO and the Acting CFO
We confirm that, to the best of our knowledge, the financial statements for the first half year of 2016, which have been prepared in accordance with IAS 34 Interim Financial Statements as adopted by the European Union and the requirements of the Cyprus Companies Law, give a true and fair view of the company’s assets, liabilities, financial position and profit or loss of the company, and that the interim management report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph and the Cyprus Companies Law and Cyprus Transparency Requirements Law No:190(1) 2007 section 10.
Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com
Q2 2016 report (PDF, 40 kB)
Larnaca, 24 August 2016
The Board of Directors of Prosafe SE
For further information, please contact:
Stig Harry Christiansen, Acting CEO
Prosafe Management AS
Phone: +47 478 07 813
Robin Laird, Acting CFO
Prosafe Offshore Services Pte Limited
Phone: +65 81 27 21 01
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 991 09 467
To the top
Print print
Terms of use
Contact us
© Prosafe 2015
Accommodating the Offshore Industry
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Renee
7 years ago
SaltyMutt
8 years ago
Hot Features
Premium
