HOUSTON, May 16, 2017 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (“GulfMark” or the “Company”) (OTCPink:GLFM) today announced that it reached an agreement with certain noteholders on a comprehensive financial restructuring that, when implemented, will strengthen the Company’s competitive and financial position. Holders of approximately 47% of the Company’s unsecured 6.375% senior notes due 2022 (the “Senior Notes”) have signed a Restructuring Support Agreement (the “RSA”).
Under the terms of the RSA, the Company will convert its outstanding Senior Notes to 35.65% of the equity in a reorganized GulfMark, resulting in the elimination of approximately $430 million in outstanding debt and approximately $27 million in annual interest payments. The Company will also launch a $125 million rights offering to holders of its Senior Notes for an additional 60% of the equity in a reorganized GulfMark, providing liquidity to fund its operations. The $125 million rights offering will be backstopped by certain holders of the Senior Notes. Existing shareholders will receive 0.75% of the equity as well as warrants for an additional 7.5% of the equity in the reorganized GulfMark. The warrants will have a 7-year term and an exercise price based on a reorganized overall equity value of $1 billion.
The restructuring will be implemented through a voluntary chapter 11 bankruptcy filing of the Company on or before May 21, 2017. The Company will continue its operations throughout the process. The Company has entered into a commitment letter, subject to certain conditions including execution of definitive documentation, for financing to support its operations during the process.
“The restructuring will enhance our competitive position when contracting with customers and vendors, and it will substantially strengthen our capital structure and liquidity,” said Quintin Kneen, President and Chief Executive Officer. “While the industry conditions remain challenging, this debt reduction and rights offering will significantly enhance GulfMark’s financial position.”
Mr. Kneen continued, “We will continue to focus on being the provider and employer of choice in the industry. Our employees’ dedication to providing safe and reliable services to our customers enables us to be the first call in the offshore vessel industry, and I want to thank them for their service to GulfMark. This restructuring enables us to continue meeting our ongoing obligations to all customers, employees, and vendors. We are confident that this step will position GulfMark to seize opportunities as the downturn continues and in the eventual market recovery.”
Additional information on the RSA will be filed with a Form 8-K with the U.S. Securities and Exchange Commission.
This press release does not constitute an offer to sell or purchase any securities, which would be made only pursuant to definitive documents and an applicable exemption from the Securities Act of 1933, as amended.
GulfMark has retained Weil, Gotshal & Manges LLP as legal counsel and Alvarez & Marsal North America, LLC and Evercore Group LLC as financial advisors.
About GulfMark Offshore
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of offshore support vessels serving every major offshore energy industry market in the world.
Forward Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain or be identified by the words “believe,” “expect,” “expected to be,” “anticipate,” “plan,” “intend,” “foresee,” “forecast,” “continue,” “can,” “will,” “will continue,” “may,” “should,” “would,” “could” or other similar ex
Stephen Cohen Teneo Strategy for GulfMark OffshoreE-mail: email@example.com (212)886-9332
May 16, 2017
GulfMark Offshore, Inc.