A group of banks – DBS, OCBC, UOB, Maybank, and CIMB – and Caterpillar Financial have agreed to provide Ezion Holdings with a refinancing package of approximately $1.5 billion, which will stretch over six years.
In a statement, Ezion Holdings, a Singapore-listed offshore and marine group, said it has successfully secured refinancing from its six secured lenders, marking its last leg of refinancing and restructuring exercise before seeking approval from shareholders.
The refinancing package includes minimal fixed principal repayments and decreased interest rates for these loan facilities as well as an aggregate of up to $118 million in additional revolving credit facilities.
In turn, Ezion’s CEO Chew Thiam Keng and his family have offered 100 million of their shares in Ezion to cement support from secured lenders.
“The extensive refinancing and restructuring package will strengthen Ezion’s cash flow and provide additional working capital to the group,” Ezion disclosed.
The company said it will also apply to the Singapore Exchange (SGX) to lift the suspension of the trading of its shares upon approval and completion of its refinancing and restructuring exercise.
An EGM will be convened in March next month to obtain shareholder approval for the new bonds, shares, and warrants to be issued under the refinancing exercise.
On November 20, 2017, Ezion obtained overwhelming support from the security holders of its six series of bonds and securities in a consent solicitation.
Ezion chairman Wang Kai Yuen said the group is appreciative of the contribution of the 100 million shares from Thiam Keng and his family, which he said attests to the CEO’s deep commitment to Ezion.
Ezion is primarily engaged in the business activities of providing liftboats, service rigs and offshore logistics vessels. Its liftboats are primarily deployed for the servicing and intervention of oil wells, commissioning, maintenance, repair and decommissioning of offshore production platform infrastructure as well as for accommodation support.
The liftboats, which are generally used by national oil companies and multinational oil firms, are deployed in offshore oil and gas projects in Southeast Asia, Middle East, and West Africa regions.