“I am proud that TORM, its lenders and Oaktree have successfully negotiated and implemented this comprehensive Restructuring. Thereby, we have created one of the largest owner-operators of product tankers globally, and we expect TORM to deliver strong, positive financial results already this year after an extended period of financial difficulties”, says Chairman of the Board Flemming Ipsen.
“I am very pleased that TORM with this Restructuring regains its financial and strategic flexibility. The Restructuring and TORM’s strong operational performance provide a robust platform for the future as we set out for new horizons”, says CEO Jacob Meldgaard.
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TORM successfully completes the Restructuring including the contribution of assets by OCM Njord Holdings S.à.r.l.
TORM has successfully completed its comprehensive Restructuring described below (the “Restructuring”), recapitalizing its balance sheet, by reducing the existing debt from approximately USD 1.4bn to approximately USD 561m by way of a lender debt writedown to current asset values against the issuance of warrants and a subsequent optional exchange of debt to equity.
As part of the Restructuring, OCM Njord Holdings S.à.r.l. (“Njord Luxco”), a wholly owned subsidiary of entities owned by Oaktree Capital Management (“Oaktree”), has contributed a fleet of 25 on-the-water and six newbuilding product tankers to TORM’s group. The result has been to the creation of one of the largest owner-operators of product tankers globally that is poised for growth with:
- A diverse portfolio of 74 owned product tanker vessels including LR2, LR1, MR and Handysize vessels with an average age of approximately 10 years
- A cash generative business benefiting from strong industry fundamentals, significant operational leverage, large on-the-water fleet and scale across multiple vessel segments
- A strong balance sheet providing significant financial flexibility to fund future fleet investment
- A restructured debt with attractive terms, flexibility and repayment profile
Following the registration of the capital increases with the Danish Business Authority, the registered A share capital of TORM will amount to nominally DKK 957,543,745.54. The new A shares to be issued in connection with the Restructuring correspond to 99.2% of TORM’s registered share capital and votes.
It is currently expected that the new A shares will be admitted to trading and official listing on Nasdaq Copenhagen by end of July 2015.
For the full-year 2015, the combined group expects positive EBITDA in the range of USD 170-210m and a profit before tax in the range of USD 100-140m. As at close of business 13 July 2015, the combined group has available liquidity in the form of cash and cash equivalents in excess of USD 125m (of which, USD 55m represents an Oaktree cash injection) and a new undrawn working capital facility of USD 75m.
Read more in the attached file.
