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Ezion dangles further protections as it courts bondholders' support for refinancing
OIL and gas contractor Ezion Holdings is offering bondholders protection if a planned refinancing does not take place as planned, hoping that the sweetened terms will win enough support for the plan.
Under a proposed amendment to the original plan, the coupon, interest payment dates and form of payment for S$425 million of notes due between 2018 and 2020 will revert to their original terms if conditions for Ezion's proposed refinancing are not met by March 31, 2018.
Ezion will also be required to redeem those bonds within 30 days of the refinancing winning approval from bondholders. For holders of S$150 million of 7 per cent perpetuals, a new amendment will oblige Ezion to redeem the securities once the refinancing conditions have been met.
Ezion is offering conversion options and bonus warrants for holders of the notes and perpetuals that will swap out the liabilities for equity at about 27.63 Singapore cents per common share. Holders who convert early will enjoy a further discounted conversion price of 24.87 Singapore cents per share.
Bond and perpetual holders will vote on Nov 20.