Telford restructures balance sheet amid challenging offshore services market
Dubai-based offshore services provider Telford Offshore has restructured its balance sheet and boosted its order book, providing a more stable platform for the company in the challenging offshore services market.
In an update on Wednesday the company said it had paid off $77 million in tranche A senior notes due at the end of 2019 and had issued a new senior note expiring at the end of 2021.
The offshore services company has also exchanged $212 million of tranche B junior notes expiring in February 2024 for a $214 million perpetual junior payment-in-kind (PIK) note.
As a result of these transactions, Telford entered 2020 with a much leaner balance sheet with significantly reduced leverage, the company said.
According to the company, the overall cost of its debt has been reduced, which will improve its liquidity moving forward.
Ivan Coyard, Telford Offshore CFO, said: “We are very pleased to have restructured our balance sheet in a difficult capital market for the oil and gas service industry. Our increased asset utilization and backlog coupled with this improved balance sheet position provides a more stable platform for growth in the challenging offshore services market.”
Telford has recently expanded its order book by around $15 million by taking on additional work with existing clients in Nigeria and Mexico. This will help ensure high utilization levels of the company’s fleet of DP3 vessels throughout the early part of 2020.
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