Gulf Marine Services PLC ('GMS' or the 'Company') announces that it and all of its banks (the 'Banks') have executed an amendment for its common terms agreement and related loan documentation (the 'Agreements') to restructure its debt facilities (the 'Restructuring') which is consistent with the agreement in principle announced by the Company on 31 March 2020.
The Restructuring is designed to provide GMS with a sustainable capital structure which allows the Company to successfully execute its Business Plan and further deleverage the business through cash flow generation. Specifically, this Restructuring comprises: renewed existing term loan facilities totaling US$391 million with an extended maturity to 30 June 2025. The renewed facilities have a re-phased amortization profile, resulting in c. US$136 million reduction in fixed amortization payments through 2022. The cash interest margin is consistent with the prior facilities and is indexed to the net leverage of the Company; enhanced liquidity through a new US$50 million working capital facility that will replace the existing working capital facilities. The term of this facility has also been extended to 30 June 2025; increased financial covenant headroom that provides the Company with greater financial flexibility; if the Company meets certain conditions subsequent, including raising at least US$75 million of net proceeds from an equity capital raise, then no additional interest will be payable by the Company and no equity linked instruments will be issued to the Banks. If these conditions are not met, then PIK interest and contingent warrants may be due to them.
The Company is appreciative of the Banks' ongoing support that enabled signing of the Agreements 3 weeks ahead of schedule. Closing of the Restructuring is subject to market standard conditions precedent.
With the new Agreements in place, the Company intends to seek shareholder approval to undertake a share capital increase before the end of 2020 (the 'Capital Increase'). The Company is aiming to raise net proceeds of at least US$75 million to strengthen its balance sheet and avoid the issuance of warrants and incurrence of PIK interest noted above. The Company is encouraged by the expressions of support for this course of action that it has received from a broad group of shareholders. Further details of the Capital Increase will be announced in due course.
Tim Summers, Executive Chairman, said: 'GMS is moving from strength to strength. Today's announcement, ahead of schedule, of a revised debt structure, provides the platform for GMS to sustain its upward trajectory and take advantage of opportunities as oil and gas markets stabilize. Our organization is gaining in confidence, with substantial operational progress and material cost synergies delivered to date in 2020. We are now focused on rewarding the trust our shareholders have placed in the Board and management team.'
Contact:
Tim Summers
Tel: +44 (0) 207 603 1515
ABOUT GMS
GMS, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become a world-leading provider of advanced self-propelled self-elevating support vessels (SESVs). The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom. The Group's assets are capable of serving clients' requirements across the globe, including those in the Middle East, South East Asia, West Africa, North America, the Gulf of Mexico and Europe.
The GMS fleet of 13 SESVs is amongst the youngest in the industry, with an average age of eight years. The vessels support GMS's clients in a broad range of offshore oil and gas platform refurbishment and maintenance activities, well intervention work and offshore wind turbine maintenance work (which are opex-led activities), as well as offshore oil and gas platform installation and decommissioning and offshore wind turbine installation (which are capex-led activities).
The SESVs are categorised by size - K-Class (Small), S-Class (Mid) and E-Class (Large) - with these capable of operating in water depths of 45m to 80m depending on leg length. The vessels are four-legged and are self-propelled, which means they do not require tugs or similar support vessels for moves between locations in the field; this makes them significantly more cost-effective and time-efficient than conventional offshore support vessels without self-propulsion. They have a large deck space, crane capacity and accommodation facilities (for up to 300 people) that can be adapted to the requirements of the Group's clients.
The Company's Legal Entity Identifier is 213800IGS2QE89SAJF77.
GULF MARINE SERVICES PLC 
