TIDMGMS
RNS Number : 2230U
Gulf Marine Services PLC
01 April 2021
1 April 2021
Gulf Marine Services PLC
('Gulf Marine Services', 'GMS', 'the Company' or 'the
Group')
New Debt Deal
GMS, a leading provider of advanced self-propelled,
self-elevating support vessels serving the offshore oil, gas and
renewables industries, is pleased to confirm that it and all of its
banks have executed an amendment to its common terms agreement and
related loan documentation to amend certain terms consistent with
the term sheet announced by the Company on 16 March 2021.
Amended Debt Agreement:
Under the revised agreement the rate of interest payable by the
Company on its borrowings will decrease from LIBOR +5% to LIBOR
+3%, retrospectively from the beginning of this year. The reduced
interest rate will apply until the end of 2022, after which the
existing ratchet will apply.
Additional time has been granted to the Company to raise equity
or (in the alternative) issue warrants. The previous PIK structure
and deadlines for the issuance of warrants to the banks no longer
apply; instead, providing the Company raises equity capital of a
net $25m or more no later than 30 June 2021 (the "Equity Raise"),
and raises further equity capital by 31 December 2022, taking the
combined fund raising to at least a net $75m, it will not be
required to issue any warrants nor will any PIK interest accrue.
Any such proceeds raised will be used to reduce the Company's debt
liabilities.
Mansour Al Alami GMS Executive Chairman said:
"This new agreement with the banks is on vastly improved terms
to what was agreed in June last year. As a result, it creates a
positive platform on which the future development and growth of the
business can be based; allowing the Company to benefit from the
pick-up across its core markets.
This revised structure provides the time needed to seek to
complete the $75m equity raise, as well as review alternative
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."
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"),
which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018.
Enquiries: Tel: +44 (0)20 7603
1515
Gulf Marine Services
PLC
Mansour Al Alami
Executive Chairman
Celicourt Communications Tel: +44 (0)20 8434
Mark Antelme 2643
Philip Dennis
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 Qatar. 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.
Evolution Cantilever Capability
GMS Evolution and her cantilever work over system has been
designed and built to enable heavier work over scopes from a
self-propelled jack up barge. The optimised design enables
execution of Heavy Well Intervention (HWI) benefitting from the
efficiencies of our 4-Legged self-propelled jack up barges provide.
The type of HWI work that can be carried out include:
Electrical Submersible Pump (ESP) change out
-- Plug and abandonment:
-- Re-completion
-- Side-tracks
-- Slot Recovery
-- Work Overs
-- Coil Tubing
And the benefits include:
-- Significant time savings moving between locations resulting
in workover programmes being completed significantly quicker
therefore allowing clients to maximise production levels
-- No requirement to hire tugs to assist with drilling rig moves
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.
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END
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