EZRA Holdings has launched a consent solicitation in relation to two series notes due 2016 and 2018.
The company is convening meetings with noteholders of each series, seeking approval on certain resolutions.
These resolutions are to align key financing covenants to a form consistent with Emas Offshore's multi-currency debt issuance programme and within the group, update the consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) to consolidated interest expense ratios to reflect the structure of the group after the set-up of a subsea services joint venture; and to provide the group with greater flexibility to pursue beneficial joint ventures and partnerships.
To develop its subsea services business, the company entered into a strategic agreement in August with Chiyoda Corp to form a 50:50 joint venture, which is expected to provide strategic, operational and financial benefits to both.
Noteholders who deliver valid votes ahead of the early consent fee deadline of Nov 20 will receive a one-time fee of S$875 per S$250,000 held of the Series 003 Notes and S$500 per S$250,000 for the Series 004 Notes.
Meanwhile, noteholders who vote in favour of the resolutions at the meeting on Dec 2 or after the early deadline will receive S$500 per S$250,000 held of the Series 003 Notes and S$250 per S$250,000 for the Series 004 Notes.
The extraordinary resolution proposed at the relevant meeting would need to be passed by at least 75 per cent of voters.
The two notes are part of a S$500 million multi-currency debt issuance programme.