The refinancing exercise saw the profile of Vallianz’s borrowings with the lenders restructured to a repayment term of 8.2 years from 5.8 years previously, and the maturity of these borrowings extended to December 2022. In return, Vallianz will grant the lenders a shared security package over the shares of certain subsidiaries and certain fixed assets of the group.
The completion of the debt restructuring exercise will result in a deferment of the repayment of the principal amount of borrowings owing from Vallianz, accordingly relieving the group’s cash flow by $103.5m in the next two years.
“The group is appreciative of the support given by the lenders, especially during this difficult period facing the offshore oil and gas industry. The successful completion of the debt restructuring exercise will better position the group to withstand the market slowdown and move forward on a stronger financial footing,” said Ling Yong Wah, ceo of Vallianz.
Saudi Arabia-based Rawabi Holding Company, controlling shareholder of Vallianz, has also expressed gratitude to the lenders.
“The lenders’ consent to the debt structuring exercise reflects their confidence in the group’s ability to weather the current difficult market conditions,” said Sheikh Abdulaziz AlTurki, group chairman of Rawabi.
Singapore-listed Vallianz had posted a 2016 profit of $13.81m, down 20.9% year-on-year amid an offshore industry marked by intense competition, downward pressure on charter rates and low vessel utilisation.
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