MMA Off­shore backed in $97m rais­ing

The Australian Energy Review - - NEWS - CAMERON DRUM­MOND

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.

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