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(Alliance News) - Oil and gas services company Gulf Marine Services PLC on Tuesday said it has secured a new debt structure with lenders as part of the company's objective of achieving a sustainable capital structure.
Under the new debt agreement, the company has renewed existing term loan facilities with an extended maturity to June 30, 2025, and secured a new USD50 million working capital facility.
The new debt structure also provides increased financial covenant headroom to the company.
Gulf Marine said it also 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 USD75 million of net proceeds.
Tim Summers, executive chair of Gulf Marine Services, said: "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."
Gulf Marine has decided to delay the release of its 2019 results beyond April 6 in line with UK Financial Conduct Authority's request for two-week moratorium
Shares in the company closed at 3.55 pence each on Thursday in London, up 11%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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