Boxship and bulker owner Borealis Finance has clinched a refinancing deal with bondholders that secures liquidity until towards the end of 2023.
The UK-based company told TradeWinds that two-thirds backing for its refinancing had now been "fully secured" in a vote.
"These amendments and fresh equity injection should give us runway until maturity of the bond and we now have a strong balance sheet inside the bond with liquidity of $40m-plus," teh company added.
The $200m 7.5% issue now matures in November 2023.
An amendment fee of $500,000 will now be paid to bondholders.
Borealis had said earlier this week it had indications that more than 67% of holders were supporting amendments to terms.
The company had been seeking an 18-month extension of maturity for its issue, supported by a cash injection of $8m from its private equity majority owner KKR.
But this has now been cut to a year's extension and new equity of $18m after negotiations.
Covenants waived
Financial covenants will be waived or adjusted until 31 December 2021 and Borealis will be allowed to use up to $12m from the sale of two vessels for general corporate purposes.
The group had a fleet of 25 containerships and three bulkers at the end of March, but has since agreed to sell a bulker.
Borealis Finance is one of the portfolios managed by Borealis Maritime in partnership with KKR.
The group manages around 80 vessels for different investors, with KKR as the largest.
DNB Markets acted as advisor to the company on the bond refinancing.
Borealis has set a deadline of 13 July for other bondholders to accept the new terms.
It had called off a bondholder meeting in June as talks continued with some investors.
As of the end of May, Borealis was compliant with its financial covenants, having liquidity of $13.9m and a loan-to-value ratio of 68.7%.
Big support from backer
KKR has committed a total of $650m of equity to the group since 2013, and the new equity highlights its continued support, Borealis said.
Borealis' total assets amounted to $335m as of 31 March, with equity standing at $121m. Interest-bearing debt is $197m.
The first-quarter net loss was $960,000, compared with $5.25m in 2019, as revenue grew to $23m from $20m.
