Falcon Energy seeks extension for S$50m notes due September

MAINBOARD-LISTED Falcon Energy Group will ask holders of S$50 million of notes due September 2017 to extend the maturity date by three years and waive all covenants, the offshore oil and gas contractor said on Wednesday after the market closed.

Noteholders were told of the proposed duration of the extension at an informal meeting with the company on Wednesday, the second such meeting conducted by Falcon Energy as it seeks to conserve cash amid an industry-wide downturn.

The notes carry a coupon of 5.5 per cent.

Falcon Energy said it will conduct a consent solicitation exercise, and will call a third informal meeting with bondholders when details are closer to being finalised.