Far-Eastern Shipping Company PLC and its subsidiaries (together the «Group») announce today that noteholders representing more than 75% 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.
The Group can confirm that it has obtained the requisite level of consent from the noteholders (i.e., a majority in number representing at least 75% of the outstanding principal amount of the USD Notes1) required for the proposed English scheme of arrangement to implement the Restructuring. The Group would like to express its gratitude to the noteholders, Ad Hoc Group and its advisors for their commitment to the Restructuring process.
As previously announced, the Trigger Date occurred on 13 September 2017. Pursuant to the terms of the LUA, the 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, any other noteholders who accede to the LUA by 4 October 2017 will also be eligible for Lock-Up Fees. The 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.
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. The Group believes that the Restructuring will de-lever it to a sustainable level, allowing it to remain operationally competitive and ensuring the viability of the business going forward. Noteholders interested in receiving more information regarding the LUA or in acceding to the LUA are directed to follow the link https://www.fesco.ru/en/investor/corporate-bonds/debt-restructuring/
Dmitriy Ivanov, FESCO
+7(495)7806001 ext. 11160
Maria Kobzeva, FESCO
+7(495)7806001 ext. 11014
Further details may be obtained from the Information Agent appointed in respect of the LUA:
Lucid Issuer Services Limited
12 Argyle Walk
London WC1H 8HA
Attention: Victor Parzyjagla / Alexander Yangaev
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.
1Excludes the USD Notes which are not in circulation by reason of being held by an affiliate of the Group.