Havila Shipping has finally completed its latest $420m refinancing after missing a previous deadline on 31 May.
Documentation relating to a formal agreement with banks and bondholders took longer than expected.
But the Oslo-listed offshore vessel owner company said in a statement on Tuesday: "The debt restructuring as described on 7 April will be finalised today."
The refinancing involves a new convertible loan from the controlling Saevik family that will see it maintain control of the shipping company, plus a potential repair issue of shares.
Debt maturity and some repayments will be pushed out until at least 2025, as it seeks to preserve cash in markets hit by Covid-19 disruption and oil price weakness.
More time to pay bonds
On Tuesday, Havila also provided details of the outstanding amounts of two bonds issues used to finance two of its vessels.
There is NOK 498m ($51m) still to be paid on the HAVI07 bond and NOK 168m on the HAVI04 issue. Both now mature on 31 December 2024.
The new agreement refinances bank debt, with additional bonds to be issued to settle interest owing.
Debt will be organised into two tranches. The first will see instalments and interest payable, while the other carries no interest and any outstanding amounts will be converted to equity at the start of 2025 or 2026.
Tranche A comprises NOK 3.1bn of vessel debt and NOK 112m of bonds, while tranche B is NOK 1.1bn of borrowings and NOK 56m of bonds.
In a worst-case scenario, NOK 3bn will be converted into Havila Shipping shares — or 47% of the company.
Lenders are Danske Bank, DNB, DVB, the Norwegian Export Credit Guarantee Agency, Nordea, Sparebank 1, Swedbank and Islandsbanki.
"The restructuring agreements will contribute to maintaining a liquidity position of NOK 175m [$17m] throughout the duration of the agreement," the shipowner said at the time.
Havila's last refinancing deal was executed in February 2017 after a prolonged market slump, but this expires on 7 November 2020.
