Prosafe SE Secures Support for Major Recapitalisation Plans
Prosafe SE's Strategic Recapitalisation Efforts
Prosafe SE, a prominent operator of semi-submersible accommodation vessels, has reached an exciting agreement concerning its significant recapitalisation plan. This initiative is backed by lenders responsible for managing the company’s USD 250 million and USD 93 million loan facilities, marking a pivotal step towards reinforcing Prosafe's financial standing.
Overview of the Recapitalisation Transaction
The recapitalisation plan entails the equitisation of USD 193 million from the existing loan facilities. This means lenders will exchange part of their debt for equity, leading to these lenders owning 90% of the outstanding shares in Prosafe following the transaction's completion. Current shareholders will initially retain 5% of the company’s shares and will have the opportunity to acquire an additional 5% through penny warrants, priced at EUR 0.01 each.
Details of the New Financial Structure
The recapitalisation will not only equitise existing debt but will also restore and enhance the financing structure through a new facility. This New Facility will consist of:
- A super senior secured facility amounting to USD 150 million, composed of USD 75 million from new funds backed by creditors and USD 75 million from reinstated debt. Both portions will mature by December 31, 2029.
- A reinstated senior secured facility that includes USD 75 million in reinstated loans, also maturing at the end of 2029.
Establishing a Robust Capital Framework
This strategic move aims to foster a sustainable capital structure for Prosafe, assuring liquidity and financial flexibility to meet future operational and capital demands. Upon completion, the gross debt will be estimated at USD 306 million, comprising the super senior facility, the senior facility, and the remaining Cosco Seller’s Credit.
Ensuring Financial Stability
Importantly, the net debt is projected to be around USD 220 million, providing approximately USD 80 million in unrestricted liquidity after accounting for transaction costs. This new framework is designed to support Prosafe’s operational requirements and growth strategy.
Implementation and Future Steps
The finalisation of the recapitalisation hinges on aligning necessary documentation with lenders and shareholders, alongside obtaining expected approval from lenders and shareholders during an extraordinary general meeting. Prosafe aims to complete the transaction by the end of Q3 2025.
Leadership's Perspective
CEO Terje Askvig expressed optimism regarding the backing the company received from its lenders and key shareholders. The ongoing support signifies a critical juncture in Prosafe’s refinancing journey, contributing to improved balance sheets that underline Prosafe’s position as a leader in providing floating accommodation vessels and maintenance solutions.
Contact Information
For further information, you can reach out to:
Terje Askvig, CEO
Phone: +47 952 03 886
Reese McNeel, CFO
Phone: +47 415 08 186
As a public company listed under the ticker code Oslo: PRS, Prosafe continues to adapt to the evolving market demands and regulatory landscape.
Frequently Asked Questions
What is the purpose of Prosafe's recapitalisation?
The recapitalisation aims to improve financial stability, restructure existing debt, and enhance liquidity for future operational needs.
Who is supporting the recapitalisation plan?
The plan is backed by lenders of the existing loan facilities and shareholders who own a significant portion of the company's shares.
What will happen to existing shareholders after the transaction?
Existing shareholders will initially retain 5% of their shares and can acquire more through penny warrants.
When is the recapitalisation expected to be completed?
The company aims for completion by the end of the third quarter of 2025, pending approvals.
How will this recapitalisation affect Prosafe's operations?
This strategic move is expected to enhance liquidity, allowing Prosafe to meet capital expenditures and operational needs.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.