MMA Offshore backed in $97m raising
MARINE operator MMA Offshore is looking to raise $97 million to pay off debt and refinance its loan facilities in a bid for survival. MMA, formerly known as Mermaid Marine Australia, is one of Asia-pacific’s largest marine logistics companies, with 30 vessels and about 1000 personnel. Its FY17 revenue was $221.8m, however the company has been continually hampered by a $300m net debt balance and already twice amended its lending agreements this year. The raising is comprised of a $74.6m one-for-one share offer and $22.4m placement to institutional investors at 20 cents per share. The reduction in its net debt position is expected to reduce from $295m to $203m upon the successful completion of the raising. MMA has also committed to a further amortisation of $30m by 31 December this year through the sale of its non-core vessels. MMA said a continuing focus on sustainable cost management and an expected market recovery should lead to improved earnings and an increase in current fleet utilisation and charter rates. “The company should be in a stronger position to be able to meet its financial commitments and to refinance its debt facilities before maturity in September 2021.”
The raising was expected to reduce MMA Offshore’s net debt from $295m to $203m.