Perisai shares nosedive on bondholders’ rejection of maturity date extension
PETALING JAYA: Perisai Petroleum Teknologi Bhd’s shares nosedived as much as 32% yesterday, as its bondholders rejected the extension of the maturity date for its S$125 million (RM377.3 million) bonds.
In a filing with Bursa Malaysia yesterday, Perisai said the trustee of the bonds has found it to be in default by virtue of the minimum coverage ratio covenant falling below the requisite ratio of 3.0 : 1 in respect of the period ended June 30 2016.
The company added, however, that the trustee does not intend to take any further action to declare the notes to be due and repayable unless directed by noteholders.
It was reported that 70% of Perisai bondholders voted against the waiver on payments and other obligations at the company’s bondholders meeting.
This news sent Perisai’s share price down by 3.5 sen or 28% to close at 90 sen, with some 71.9 million shares changing hands, being the second most traded stock of the day.
The S$125 million bonds carrying a coupon rate of 6.875% were due on Monday. The issue is part of the company’s S$700 million multicurrency medium-term notes programme.
Perisai had sought an extension until Feb 3, 2017 from Oct 3, 2016, according to its consent solicitation note dated Sept 9.
Nonetheless, Perisai said it, together with its joint venture partner Emas Offshore Ltd (EOL), had on Sept 30 received an indicative offer of financing from a financial institution.
“Part of the amount from the indicative offer would be earmarked towards a mutually acceptable resolution with the company’s noteholders with regard the notes through the availability to the Perisai group of a sum of approximately US$20 million,” the company said, stressing that it is on the basis that it intends to engage with the noteholders to come up with an alternative proposal.
Perisai and EOL are in discussions with the financial institution to procure a formal letter of offer subject to satisfaction of certain conditions.
As part of the indicative financing package, Perisai is also in talks with EOL to resolve various issues among themselves, including a put option that was granted by EOL to Perisai for Perisai’s 51% shareholding in SJR Marine (L) Ltd.
Perisai and EOL are joint-venture partners in Emas Victoria (L) Bhd and SJR, the owner of the floating, production, storage and offloading vessel Perisai Kamelia and the offshore construction vessel Enterprise 3 respectively.
As at June 30, Perisai’s cash and cash equivalents stood at RM16.93 million versus short-term borrowings of RM475.38 million.