BW Offshore drops bond amendment plans after bondholder feedback

BW Offshore Limited has announced it will not proceed with contemplated amendments to its BWO06 bond, which aimed to align financial covenants with other senior debt facilities. The decision follows dialogues with certain bondholders.

The proposed amendments included changes to the equity ratio definition and dividend covenant. The company sought to exclude client funding from "Total Assets" when calculating the equity ratio, and aimed to increase the dividend covenant from 50% to 100% of accumulated net profit starting January 1, 2025.

These amendments had already been approved by existing syndicate banks, and BW Offshore had offered a one-time amendment fee of 1.50% of the notional amount of outstanding bonds. However, based on feedback received, the company has chosen to maintain the current bond terms.