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Majority of Noteholders sign up to Standstill and Lock Up Agreement with FESCO

14 September 2017

Far-Eastern Shipping Company PLC and its subsidiaries (together the “Group”) announce today that noteholders representing more than 50% of the outstanding 8.00% Senior Secured Notes due 2018 and 8.75% Senior Secured Notes due 2020 (together the “USD Notes”) have entered into the standstill and lock-up agreement (the “LUA”) to facilitate the implementation of the restructuring of the Group’s indebtedness under the USD Notes (the “Restructuring”).

Capitalised terms used in this announcement and not otherwise defined herein shall have the meaning given to them in the LUA.

Noteholders who, in aggregate, hold at least 50% of the outstanding principal amount of the USD Notes[1] have signed or acceded to the LUA and, accordingly, pursuant to the terms of the LUA, the Group confirms that the Trigger Date occurred on 13 September 2017.

Payment of the First Lock-Up Fee and the September Lock Up Fee will be made to the qualifying noteholders within 5 Business Days of the Trigger Date (or, if later, within 5 Business Days following the date on which such noteholders accede to the LUA).

The Group also confirms that, in accordance with the terms of the LUA, payment of the First Lock-Up Fee (and the following instalments of the Lock Up Fees in the amounts described in the LUA) will be made only to those noteholders who have signed or acceded to the LUA on or prior to 4 October 2017. 

As previously announced, the purpose of the LUA is to facilitate the implementation of the Restructuring.  The LUA will terminate on 31 October 2017, subject to certain termination events and an extension option.

The Group strongly encourages other holders of the USD Notes to accede to the LUA in support of the Restructuring, which the Group believes to be the optimal mutually beneficial solution for both noteholders and the Group. Noteholders interested in receiving more information regarding the LUA or in acceding to the LUA are directed to follow the link http://www.fesco.ru/en/investor/corporate-bonds/debt-restructuring


Investor Contacts

Dmitriy Ivanov, FESCO

+7(495)7806001 ext. 11160

ir@fesco.com

Media Contacts

Maria Kobzeva, FESCO

+7(495)7806001 ext. 11014

pr@fesco.com


 

Further details may be obtained from the Information Agent appointed in respect of the lock-up agreement:

Information Agent

Lucid Issuer Services Limited

Tankerton Works

12 Argyle Walk

London WC1H 8HA

Contacts:

Email: fesco@lucid-is.com

Attention: Victor Parzyjagla / Alexander Yangaev

IMPORTANT NOTICE:

These materials are not intended to and do not constitute investment advice. These materials do not constitute or form any part of and should not be constructed as an offer or commitment to sell or issue, a solicitation, recommendation, commitment or invitation to subscribe for, underwrite or otherwise acquire, and should not be construed as an advertisement for, any securities of the Issuer or any member of its group in any jurisdiction or an inducement to enter into investment activity in any jurisdiction.




[1] Excludes Notes which are not in circulation by reason of being held by an affiliate of the Group.



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