Following cancellation of the tender offer and consent solicitation process with holders of the JLA02 corporate bond issued by J. Lauritzen in late March, the company conducted consultation with Lauritzen Fonden and its core lenders in order to identify an alternative solution regarding the corporate bond.
Under the terms for the new agreement, Lauritzen Fonden will provide an additional capital injection of USD 50 million, bringing the committed capital injection to a total of USD 80 million.
The increased capital injection wold be applied to ensure the repayment of the outstanding JLA02 bond and the related hedging debt when these fall due in October 2017.
J. Lauritzen said that the deal between the parties is subject to satisfactory final documentation. The company added that it is also seeking support to the amended main terms from the financing parties in its JPY-denominated NEXI-backed loan facility.
“This new financing agreement will significantly strengthen our balance sheet and reduce our financing cost. We highly appreciate the confidence that Lauritzen Fonden and our core lenders have shown us in providing a solid financial solution,” Mads P. Zacho, CEO of J. Lauritzen, said.