Floatel International, a company providing offshore accommodation rigs for the oil and gas industry, said Wednesday it had successfully completed its comprehensive balance sheet restructuring.
The company said it had secured a fully consensual deal among all key stakeholders, including its shareholders, 1L Bondholders, 2L Bondholders, and its Bank Vessel Facility lenders.
In connection with the restructuring transaction, Floatel has retained its existing fleet of 5 operating vessels while reducing its debt by $610 million.
"The company has also enhanced its liquidity position by securing a new $100 million Revolving Credit Facility and reducing its debt service. The Company is exiting its restructuring process well-positioned to tender for new business as the market recovers, thanks to its significantly deleveraged and well-capitalized balance sheet, and with the continued support of its stakeholders and existing senior leadership," Floatel said.
Peter Jacobsson, CEO of Floatel said: "We are very pleased to announce today the completion of our restructuring which was agreed on fully
consensual terms with all our stakeholders.
"The restructuring provides the business with a stable, deleveraged capital structure that will ensure the short and long-term viability of the company and we’d like to thank all our stakeholders for their ongoing support and commitment to the Company.
Today is an important milestone for Floatel, and we look forward to using our strengthened position to win new business as the market conditions continue to improve.”
Based on Jacobsson comments, the company seems much more optimistic about the future, than for example back in August 2020, when it said the offshore accommodation market faced "a prolonged downturn which will be even longer due to COVID-19 effects with low fleet utilization and weaker outlook than estimated before and especially in the North Sea."
It at the time said that tender activity and ongoing commercial discussions indicated that decent activity level was not expected before 2022.