The successful restructuring saw Torm reduced its debt to about $561m from around $1.4bn by way of a lender debt writedown to current asset values against the issuance of warrants and a subsequent optional exchange of debt to equity.
As part of the restructuring, OCM Mjord Holdings, wholly-owned by Oaktree, has contributed a fleet of 25 six newbuilding product tankers to Torm.
In addition, the registered A share capital of Torm will amount to nominally DKK957.54m. The new A shares to be issued in connection with the restructuring correspond to 99.2% of Torm’s registered share capital and votes.
It is currently expected that the new A shares will be admitted to trading and official listing on Nasdaq Copenhagen by end of July 2015.
“I am proud that Torm, its lenders and Oaktree have successfully negotiated and implemented this comprehensive restructuring. Thereby, we have created one of the largest owner-operators of product tankers globally, and we expect Torm to deliver strong, positive financial results already this year after an extended period of financial difficulties,” said Flemming Ipsen, chairman of the board of Torm.
Torm now has a diverse portfolio of 74 owned product tanker vessels inclduing LR2, LR1, MR and handysize vessels with an average age of approximately 10 years.
For the full year 2015, the combined group expects positive EBITDA in the range of $170-210m. As at 13 July, the combined group has available cash liquidity in excess of $125m and a new undrawn working capital facility of $75m.
“I am very pleased that Torm with this restructuring regains its financial and strategic flexibility. The restructuring and Torm’s strong operational performance provide a robust platform for the future as we set out for new horizons,” said Jacob Meldgaard, ceo of Torm.
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