Tidewater Plans Bond Offering to Refinance Debt

Bartolomej Tomic
Friday, October 8, 2021

U.S. based offshore support vessel owner Tidewater plans to start an offering of USD denominated 5-year senior secured bonds, subject to market and other conditions. 

"The Company intends to use the net proceeds from the bond issue towards refinancing of the Company’s outstanding debt and for general corporate purposes," Tidewater said.

The bonds will be privately placed in the United States in accordance with U.S. securities laws and sold outside the United States pursuant to Regulation S under the Securities Act of 1933, Tidewater said.

Back in August, during the company's quarterly presentation, Quintin Kneen, Tidewater’s President and Chief Executive Officer said that at the end of the second quarter, Tidewater had $135.2 million of principal outstanding on its senior secured notes, scheduled to mature in August 2022, along with $151.4 million of cash on the balance sheet. 

"We continue to monitor the debt capital markets for the optimal timing of a potential refinance of all or a portion of these notes, as early repayment of this debt carries a significant pre-payment penalty," Kneen said in August.

During the second quarter, Tidewater decreased its net debt position by $21.1 million, ending the second quarter with $4.5 million of net debt on the balance sheet.

Tidewater is also working to sell or recycle vessels deemed uneconomic or not fit to meet the company's future strategic goals.

During the second quarter, Tidewater disposed of seven vessels and other assets for $18.6 million and is now looking to dispose of the 14 vessels remaining in assets held for sale in 2021 and 2022.

As at June 30, 2021, Tidewater had 118 active offshore vessels, 20 stacked vessels, and 14 assets held for sale.

Categories: North America Vessels Offshore

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