PGS has reached agreement in principle with most of its lenders to renegotiate its debt repayments as the company attempts to preserve liquidity after a drop in business as a result of the Covid-19 pandemic.
PGS has reached agreement in principle with most of its lenders to renegotiate its debt repayments as the company attempts to preserve liquidity after a drop in business as a result of the Covid-19 pandemic.
The company has agreed terms with lenders on its ~$300 million export credit facilities (ECF), and a majority of the lenders under its $350 million revolving credit facility (RCF) and ~$520 million term loan B facility (TLB).
To date, the company has reached agreement in principle on main terms with 62% of its ~$520 million TLB facility lenders; lenders representing 81% of its $350 million RCF; and all of the ECF financing parties. The majority of lenders under the $135 million tranche of the company’s RCF have agreed to defer the repayment that was due in September.
The main terms agreed include no debt maturities and no scheduled debt amortization until September 2022, when $135 million will be due. The $215 million RCF due in 2023 will be combined with the TLB due in 2024.
‘A required majority of lenders under the RCF and TLB facilities have entered into a forbearance agreement undertaking not to take any enforcement action in connection with this on-going default,’ said PGS. ‘The company is in dialogue with the ECF financing parties to obtain the same forbearance prior to any cross-default arising under the ECF agreement.’
PGS is continuing to work towards achieving support from the required lenders under the RCF and TLB. If unsuccessful, the company has agreed with the supporting lenders to seek implementation by use of available alternative legal restructuring procedures.
PGS said it will continue to operate as usual by performing its obligations, including payment of interest, as they fall due.
