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Gulf Marine Services secures 'significantly improved' debt terms; touts optimism ahead
StockMarketWire.com
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Support vessels provider Gulf Marine Services said it secured 'significantly improved' terms on the debt arrangements with its creditors that would save it about $53 million over the next two years and provide it with the time needed to complete its $75m equity raise.
Under the revised terms, the rate of interest payable by the company would decrease to Libor +3%, retrospectively from the beginning of this year.
Based on the company's current levels of debt, this will equate to a saving of about $53m over 2021 and 2022, when compared to the previous arrangement.
'This revised structure provides the time needed to seek to complete the $75m equity raise, as well as review alternatives options to optimise the capital structure, including a refinancing, by the end of 2022, should GMS be able to deleverage the balanced sheet and improve its Net Debt to EBITDA profile,' the company said.
The company also provided an update on trading performance and guidance.
Adjusted EBITDA guidance, for the year to 31 December 2020, was trimmed to a range of $50-to-52 million from $57-62million, reflecting to costs totalling $9.1 million, which were previously accounted for as exceptional, but now is deemed to be normal operating costs.
The company said a total of 21 months of additional work across the fleet had been secured and vessel utilisation has continued to improve.
'The company entered 2021 with 75% of the year's vessel utilisation already secured, up from 56% at the same time last year,' it added.
At 9:19am: (LON:GMS) Gulf Marine Services PLC share price was 0p at 7.07p
Story provided by StockMarketWire.com
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