TIDMGMS
RNS Number : 1963I
Gulf Marine Services PLC
31 March 2020
This announcement contains inside information and is provided in
accordance with the requirements of Article 17 of the EU Market
Abuse Regulation.
Gulf Marine Services PLC
('Gulf Marine Services', 'GMS', 'the Company' or 'the
Group')
GMS Agrees New Debt Structure to Establish Long Term Financial
Sustainability
Gulf Marine Services announces that it has reached agreement
(the "Agreement") with its syndicate of banks (the "Banks") on
heads of terms for the restructuring of its debt facilities,
including access to existing term loan facilities and new working
capital facilities (the "Facilities"). The Agreement is the result
of constructive discussions over the past several months and
highlights the Banks continued support of the Group and confidence
in the business model.
The Agreement is a key step towards GMS's objective of achieving
a sustainable and delevered capital structure. Specifically, the
Agreement provides GMS the financial flexibility to execute its
business plan successfully with:
-- Renewed existing term loan facilities with an extended maturity to 30 June 2025;
-- Enhanced liquidity through a new $50m working capital facility;
-- Re-phased amortization requirements;
-- Increased financial covenant headroom; and
-- Incentives to de-lever through a shareholder equity raise,
failing which will require the issuance of preferential securities,
and/or the incurrence of PIK interest, to the Banks.
The Agreement, while legally non-binding, has received approval
from the credit committees of all of the Banks. GMS and the Banks
are working to finalise the documentation of the Agreement by 30
June 2020. To allow this process time to conclude, the Banks have
granted GMS relief under its existing bank facilities in the form
of (i) the rollover of certain loans, (ii) the waiver of applicable
financial covenant tests and (iii) the deferral of the principal
payments due thereunder, in each case from 31 March 2020 until 30
June 2020.
The Company intends to seek shareholder approval, when equity
markets allow, to undertake a share capital increase before the end
of 2020, with the aim of raising at least $75m of net proceeds (the
"Capital Increase").
Further details of the Capital Increase will be announced in due
course.
GMS notes the extraordinary turbulence of global markets as a
result of the ongoing impact of COVID-19, as well as related
commodity price volatility. The Company is actively monitoring the
impact of these events on its business and is operating in
accordance with all applicable government guidelines.
Tim Summers, Executive Chairman, Gulf Marine Services, said:
"GMS is operating in extraordinary times: the health and safety
of our staff, contractors and customers, remain our determined
focus.
Reviewing the last six months, we have made substantial
progress: reducing the size of the organisation, cutting costs and
winning substantial new business. As a result, we have markedly
improved operational and financial performance. This Agreement with
our banks provides the foundations for the resetting of our capital
structure. GMS today is in a much healthier and stronger position
to face the unique challenge of COVID-19 as well as continued oil
price volatility. "
GMS announces that, at the request of the Financial Conduct
Authority (FCA), to "observe a moratorium on the publication of
preliminary financial statements for two weeks", the publication of
its preliminary results will be postponed beyond 6(th) April, being
the planned date of their publication. A further announcement will
be made once a revised date for publication has been
determined.
As previously announced, GMS expects 2019 EBITDA to be at the
top end of the guidance of $48-50m.
Enquiries
For further information please contact:
Gulf Marine Services
PLC Brunswick
Tim Summers Patrick Handley - UK
Executive Chairman Will Medvei - UK
Tony Hunter Tel: +44 (0) 20 7404 5959
Company Secretary Jade Mamarbachi - UAE
Tel: +44 (0) 207 603 Tel: +971 (0) 50 600 3829
1515
Notes to Editors:
Gulf Marine Services PLC, a company listed on the London Stock
Exchange, was founded in Abu Dhabi in 1977 and has become a world
leading provider of advanced self-propelled self-elevating support
vessels (SESVs). The fleet serves the oil, gas and renewable energy
industries from its offices in the United Arab Emirates, Saudi
Arabia and the United Kingdom. The Group's assets are capable of
serving clients' requirements across the globe, including those in
the Middle East, South East Asia, West Africa, North America, the
Gulf of Mexico and Europe.
The GMS fleet of 13 SESVs is amongst the youngest in the
industry, with an average age of eight years. The vessels support
GMS's clients in a broad range of offshore oil and gas platform
refurbishment and maintenance activities, well intervention work
and offshore wind turbine maintenance work (which are opex-led
activities), as well as offshore oil and gas platform installation
and decommissioning and offshore wind turbine installation (which
are capex-led activities).
The SESVs are categorised by size - K-Class (Small), S-Class
(Mid) and E-Class (Large) - with these capable of operating in
water depths of 45m to 80m depending on leg length. The vessels are
four-legged and are self-propelled, which means they do not require
tugs or similar support vessels for moves between locations in the
field; this makes them significantly more cost-effective and
time-efficient than conventional offshore support vessels without
self-propulsion. They have a large deck space, crane capacity and
accommodation facilities (for up to 300 people) that can be adapted
to the requirements of the Group's clients.
Gulf Marine Services PLC's Legal Entity Identifier is
213800IGS2QE89SAJF77
www.gmsuae.com
Disclaimer
The content of the Gulf Marine Services PLC website should not
be considered to form a part of or be incorporated into this
announcement.
Cautionary Statement
This announcement includes statements that are forward-looking
in nature. All statements other than statements of historical fact
are capable of interpretation as forward-looking statements. These
statements may generally, but not always, be identified by the use
of words such as 'will', 'should', 'could', 'estimate', 'goals',
'outlook', 'probably', 'project', 'risks', 'schedule', 'seek',
'target', 'expects', 'is expected to', 'aims', 'may', 'objective',
'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we
see' or similar expressions. By their nature these forward-looking
statements involve numerous assumptions, risks and uncertainties,
both general and specific, as they relate to events and depend on
circumstances that might occur in the future.
Accordingly, the actual results, operations, performance or
achievements of the Company and its subsidiaries may be materially
different from any future results, operations, performance or
achievements expressed or implied by such forward-looking
statements, due to known and unknown risks, uncertainties and other
factors. Neither Gulf Marine Services PLC nor any of its
subsidiaries undertake any obligation to publicly update or revise
any forward-looking statement as a result of new information,
future events or other information. No part of this announcement
constitutes, or shall be taken to constitute, an invitation or
inducement to invest the Company or any other entity, and must not
be relied upon in any way in connection with any investment
decision. All written and oral forward-looking statements
attributable to the Company or to persons acting on the Company's
behalf are expressly qualified in their entirety by the cautionary
statements referred to above.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCWPUMCWUPUURG
(END) Dow Jones Newswires
March 31, 2020 04:52 ET (08:52 GMT)
Gulf Marine Services (LSE:GMS)
Historical Stock Chart
From Apr 2024 to May 2024
Gulf Marine Services (LSE:GMS)
Historical Stock Chart
From May 2023 to May 2024