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Ezra seeks noteholder consent to amend trust deed of S$150m notes
EZRA Holdings has launched an exercise seeking consent from noteholders of its S$150 million notes due 2018 - and will convene a meeting with its noteholders on April 13 - to seek their approval to make certain amendments to the trust deed and the issue.
In a statement to the Singapore Exchange, Ezra said it has launched the consent solicitation exercise, and DBS Bank has been appointed as solicitation agent, in relation to the notes, which were issued as part of a multi-currency debt programme and have a fixed interest rate of 4.875 per cent per annum.
Ezra is facing strong headwinds from low oil prices which have led to cuts in global exploration and production and in turn, have resulted in declining charter rates and excess capacity which have affected offshore players, said the company.
"To provide for increased operational and financial flexibility in light of the softer market conditions facing the global economy and the oil and gas sector, the company believes that pre-emptive steps should be taken with respect to its financial management strategies," said the firm.
Accordingly, it has proposed to provide a "cure mechanism" for the financial half years of 2016, 2017 and first half year ending February 2018 through the establishment of an interest service reserve account for the notes in favour of HSBC Institutional Trust Services.
As a result of the implementation of the cure mechanism, the company said the trust deed and the conditions of the notes will be amended to permit the creation of security by the company.