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Debt
Prosafe is financed by secured bank debt.

USD 288 million term loan facility
In May 2014, the company secured a USD 288 million credit facility. The credit facility, which has a maturity of seven years, consists of two tranches to be drawn upon delivery of Safe Notos and Safe Eurus. USD 144 million was drawn in Q1 2016 in connection with delivery of Safe Notos.

USD 1,300 million credit facility
In February 2015, the company secured a credit facility of USD 1,300 million. The credit facility, which has a maturity of seven years, consists of two term loan tranches of USD 800 million (drawn on closing) and USD 200 million (drawn on delivery of the Safe Zephyrus) and a revolver loan tranche of USD 300 million.

Refinancing - September 2016
On 5 September 2016, the refinancing was approved by all stakeholders. Reduction of amortisation on the two bank facilities for 4 years from Q1 2017 until and including Q4 2020 with a total positive liquidity effect for the company of USD 478 million. Significant financial covenant relief was obtained on both facilities to provide the company with sufficient headroom to operate.

Amortisation
90 per cent of the originally scheduled repayments in the period 1 January 2017 until 30 June 2019 have been postponed and are to be repaid on the final maturity date. For the period 1 July 2019 until 31 December 2020, 70 per cent of the scheduled repayments have been postponed until the final maturity date.

  2017 2018 2019 2020 2021+
MUSD 1300 facility  13 13 26 39 1154
MUSD 288 facility 1.2 1.2 2.4 3.6 126.6

(Figures in MUSD)

Financial covenants in bank facilities:

  • Liquidity minimum USD 65 million (from closing of transaction)
     
  • Interest coverage ratio
    • Minimum 1.0 X (from closing of transaction until 31 December 2019)
    • Minimum 1.5 X (from 1 January 2020 onwards)
  • Leverage ratio
    • Suspended until 31 December 2020
  • Minimum market value
    • Suspended until 31 December 2018
    • Covenant set at 110% (in respect of 2 consecutive test dates)
    • For the USD 288 million facility only, a step up in the market value covenant in March 2021 to 125%
       
  • Dividend restrictions
    • No distributions until all bank lenders received repayments equal to all deferred instalments

Please refer to press releases of  7 July 2016 and 5 September 2016 for more information on the refinancing.