Floatel completes restructuring, cuts debt by $610 million

Offshore accommodation services provider Floatel International has, together with certain of its subsidiaries, completed its comprehensive balance sheet restructuring, reducing its debt by $610 million.

Floatel said on Wednesday it had secured a fully consensual deal among all key stakeholders, including its shareholders, 1L Bondholders, 2L Bondholders and its Bank Vessel Facility lenders.

In connection with the restructuring transaction, Floatel has retained its existing fleet of five operating offshore accommodation vessels while substantially reducing its debt by $610 million.

The company added it had also enhanced its liquidity position by securing a new $100 million Revolving Credit Facility and reducing its debt service.

Floatel is exiting its restructuring process well-positioned to tender for new business as the market recovers, thanks to its significantly deleveraged and well-capitalized balance sheet and with the continued support of its stakeholders and existing senior leadership.

Peter Jacobsson, CEO of Floatel said, “We are very pleased to announce today the completion of our restructuring which was agreed on fully consensual terms with all our stakeholders.

“The restructuring provides the business with a stable, deleveraged capital structure that will ensure the short and long-term viability of the company and we’d like to thank all our stakeholders for their ongoing support and commitment to the company.

“Today is an important milestone for Floatel, and we look forward to using our strengthened position to win new business as the market conditions continue to improve”.

In recent company news, the offshore unit Floatel Superior will be used as a mobile quarters facility by Vår Energi on the Balder field off Norway.