Subsea services provider Bibby Offshore Holdings Limited said it has completed the recapitalization of its balance sheet announced on December 5, 2017.
The agreement to recapitalize the balance sheet was approved January 10 by 98.7 percent of noteholders of the £175 million (approximately $243 million) 7.5 percent senior secured notes, and makes noteholders the new owners of the group.
“The completion of the recapitalization will be transformational for Bibby Offshore and is a major milestone for our business,” said Howard Woodcock, chief executive of Bibby Offshore.
“The significant investment from the group’s new owners and the improved capital structure will provide the financial platform for us to weather current market conditions and to build the company with the full confidence of our customers, suppliers and employees.”
The recapitalization was finalized January 17 and is effective immediately, resulting in the group having a substantially debt-free balance sheet with an equity injection of £50 million ($69 million). According to Bibby, this enables it consolidate and expand its position within the offshore inspection, repairs and maintenance and construction markets.
“As the market improves, we will have the strength and flexibility to capitalize on new opportunities,” Woodcock said. “Despite challenging market conditions, we have continued to secure new work and enjoyed the ongoing trust from all our customers, we have maintained service levels and are now ideally placed to do this into the future.”
Ernst & Young LLP served as financial adviser, and Latham & Watkins (London) LLP as legal adviser throughout the transaction.