Telford Offshore restructures balance sheet and boosts order book
$77 million paid back on schedule, new senior note issued, and order book expands by $15 million as fleet utilisation rate increases
Telford Offshore has paid off $77 million in tranche A senior notes due at the end of 2019 and has issued a new senior note expiring at the end 2021.
The offshore services company has also exchanged $212 million of tranche B junior notes expiring in February 2024 for a $214 million perpetual junior payment-in-kind (PIK) note.
As a result of these transactions, Telford enters 2020 with significantly reduced leverage. The overall cost of the company’s debt has been reduced, which will improve its liquidity moving forward.
Ivan Coyard, CFO, Telford Offshore, said: “We are very pleased to have restructured our balance sheet in a difficult capital market for the oil and gas service industry. Our increased asset utilization and backlog coupled with this improved balance sheet position provides a more stable platform for growth in the challenging offshore services market. We would like to thank our investors for their continued support.”
Telford has recently expanded its order book by around $15 million by taking on additional work with existing clients in Nigeria and Mexico. This will help ensure high utilisation levels of the company’s fleet of DP3 vessels throughout the early part of 2020.