Prosafe SE: Amendments of credit facilities - providing increased liquidity, flexibility and headroom

Prosafe SE is pleased to announce that the company with support from its bank syndicates has amended the USD 1,300 million and USD 288 million credit facilities.
The additional liquidity, flexibility and headroom created by the amendments, which cover both covenant headroom and voluntary option to skip two scheduled amortizations, provides Prosafe with increased operational and financial flexibility and makes the company more robust in a challenging market. This allows Prosafe to continue to work proactively with other stakeholders, including clients, lenders and its owners as illustrated by the recently completed private placement of shares and by commercial arrangements with clients.
The amendments to the credit facilities include:

Leverage ratio
Leverage ratio means the ratio of net borrowings divided by adjusted EBITDA.

31    March 2016 - 31 December 2018:     Net Debt¹⁾/EBITDA²⁾ < 6.0
January 2019 and thereafter:                   Net Debt¹⁾/EBITDA²⁾ < 5.0

¹⁾ Excluding debt related to new builds under construction
²⁾ Annualisation of contribution from new vessels that have not been in operation for a full year

Equity ratio
Equity ratio now means the ratio of the book equity to total assets.

Equity ratio to be minimum 25 per cent from 31 December 2015 until 31 December 2017, and 30 per cent thereafter.

Increased liquidity buffer
Prosafe has secured an option to voluntary skip scheduled amortizations amounting to two instalments of USD 65 million under the USD 1,300 million facility, in total amounting to USD 130 million. These voluntary amortizations options will be available to the company immediately and until 31 December 2017, subject to completion of formal documentation.

Other conditions: No dividends, bond- or equity buy-backs from 31 December 2015 unless;

i)            all voluntary skipped amortizations have been prepaid or cancelled; and
ii)          a 12 month financial forecast has been provided which confirms compliance with original financial covenants, except for the equity ratio to be minimum 35 per cent of book equity.

Prosafe's long-term dividend policy remains as described in the Q3 2014 report. However, in light of the reduction in industry activity levels, the Board decided in November 2015 to temporarily suspend dividend payments. The Board believes that this will be beneficial for the company, from a commercial, financial and strategic perspective, and that it will improve the company's financial robustness and optionality.

Prosafe may also seek to obtain continued alignment of covenants across its financing sources to allow the company to be in a better position to implement preferred initiatives in this challenging market.

Prosafe is the world's leading owner and operator of semi-submersible accommodation vessels. Operating profit reached USD 248 million in 2014 and net profit was USD 179 million. The company operates globally, employs 800 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com 
 

Larnaca, 12 January 2016
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact:

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 64 25 20


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.