Danish shipping company TORM has wrapped up its comprehensive restructuring process, recapitalizing its balance sheet, by reducing the existing debt worth up to USD 561 million.
The restructuring was carried out 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., a wholly owned subsidiary of entities owned by Oaktree Capital Management, has contributed a fleet of 25 on-the-water and six newbuilding product tankers to TORM’s group.
This has resulted in the creation of one of the largest owner-operators of product tankers with a portfolio of 74 owned product tanker vessels including LR2, LR1, MR and Handysize vessels with an average age of approximately 10 years.
“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 TORM’s Board Flemming Ipsen.
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.