Falcon Energy presents new debt plan to Series 001 noteholders

OFFSHORE and marine company Falcon Energy Group will offer step-up coupon payment on certain notes due in 2020, in a revised debt plan presented to noteholders on Thursday.

Mainboard-listed Falcon Energy, which is trying to restructure all its liabilities, also dangled the option of converting the Series 001 S$50 million notes due on Sept 19, 2020, every six months.

Besides these latest updates, the company has kept unchanged its Apr 17 proposal to convert half of the notes in question into shares upfront, at S$0.05 apiece.

But the rest of the notes, which were originally slated to get a 0.25 per cent payout each year for seven years, could now look at a step-up to 0.5 per cent in the fourth and fifth years instead, followed by a 1 per cent coupon in the sixth year, and 1.25 per cent in the final year.

Meanwhile, Falcon Energy has also offered more details on the seven-year roadmap for converting notes into shares. It is now proposing an option to convert a minimum of S$25,000 every six months, at the price of S$0.05 apiece for the first 42 months and S$0.075 apiece thereafter.

Any unconverted notes can be redeemed at a 5 per cent premium at the end of the seventh year, the company said in its presentation materials.

"Shareholders and potential investors are advised to exercise caution in trading their shares and noteholders are advised to exercise caution in trading their notes," the board added in a bourse filing, after the informal meeting with noteholders, the company's third such session.

Falcon Energy last traded in January this year at S$0.027, before the company called for a suspension.