AusGroup seek breather from provisions of S$110m notes

AUSGROUP is seeking a breather from the provisions of the trust deed and notes of S$110 million that were issued under its S$350 million multi-currency debt issuance programme.

The notes came with a coupon rate of 7.45 per cent and are originally due to mature next month.

Under the consent solicitation launched on Tuesday, the oilfield services provider is proposing to obtain a waiver for any non-compliance or potential non-compliance with various provisions as well as to obtain approval of noteholders to make certain amendments to the trust deed and the notes (including, but not limited to, the deletion of the financial covenants).

It also wants to extend the original maturity date to Oct 20, 2018, with certain additional obligations to noteholders.

Among the proposed amended terms sought is an increase in interest rate to 7.95 per cent per annum from Oct 20, 2016 to Oct 20, 2017 and to 8.45 per cent per annum from Oct 20, 2017 to Oct 20, 2018.

It is also seeking for the interest to be paid on a monthly basis on the 20th of each month starting from Nov 20, 2016 instead of semi-annually.

AusGroup may, in its own discretion, trigger an upfront partial redemption of the notes of of at least S$4 million on the first interest payment date occurring after Oct 20, 2016.

The extraordinary general meeting for shareholders to vote on the resolution will be held on Oct 5.