Bermuda, 30-September-2020, ATDL is the borrower under a senior secured bank facility agreement with an outstanding amount of USD 86.4 million (the “Senior Facility Agreement”) and issuer under a secured bond with an outstanding amount of USD 135.6 million (the “Bond Issue”).
ATDL, its lenders and key bondholders have reached an agreement (subject to formalisation) for amendments to the Senior Facility Agreement and Bond Issue. The amendments include:
(i) An extension of the maturity date of the Senior Bank Facility to 30 September 2021;
(ii) An extension of the maturity date of the Bond Issue to 31 October 2021;
(iii) Payment to the lenders under the Senior Bank Facility of (i) USD 33.06 million to reduce the principal amount of the Senior Bank Facility, and (ii) accrued interest under the Senior Bank Facility to 31 October 2020;
(iv) Payment of (i) USD 2.78 million to make redemptions under the Bond Issue at 100% of par value, and (ii) accrued interest under the Bond Issue to 31 October 2020;
(v) Adjustment of cash pay interest to LIBOR + 3.5% (plus 1.75% PIK interest) for the Senior Bank Facility and 3.5% (plus 8.5% PIK Interest) under the Bond Issue;
(vi) Quarterly amortization of the Senior Bank Facility of USD 1 million per quarter; and
(vii) Certain other amendments to the terms of the Senior Bank Facility and the Bond Issue.
The existing maturity date under the Senior Facility Agreement is today, 30 September 2020. The lenders have granted ATDL a forbearance (subject to conditions and termination rights for the lenders) to allow ATDL to implement the agreed terms outlined above within 31 October 2020.
ATDL has received feedback from bondholders holding more than 2/3 of the voting bonds under the Bond Issue of their support in principle to the proposed amendments. A notice requesting a written resolution under the Bond Issue is in the process of being finalised and will be issued shortly.
For further information, please contact:
Atlantica Tender Drilling Ltd.
+47 415 08 186