Dolphin Drilling has announced that the company is pursuing a refinancing plan.
The company has explored several refinancing options and this process is ongoing. Among the measures that are being discussed are: (i) a potential conversion of an existing USD 15 million shareholder loan; (ii) a new equity issue in cash of a NOK amount equivalent to approximately USD 15 million (a 'Private Placement'); (iii) certain amendments to the repayment profile of the company’s existing USD 65 million facility agreement dated December 22, 2023 with security inter alia over the rig Paul B Lloyd Jr. (the 'Secured Facility'); (iv) a new secured loan in the amount of minimum USD 20 million; and (v) certain other cash management improving initiatives. The company and the relevant stakeholders have not yet been able to establish an agreed refinancing plan.
With respect to the Secured Facility, the company has entered into an amendment agreement providing for amortisation relief of the instalments payable for April, May and June 2025 for a total amount of USD 5 million and a waiver of the market capitalisation covenant from March 2025 until 31 May 2025 (the 'Waiver and Payment Deferral'). The Waiver and Payment Deferral is subject to various conditions inter alia that certain cash management improvement initiatives are implemented no later than 5 May 2025.
The company has mandated Arctic Securities AS as Global Coordinator and Bookrunner for the Private Placement. Wikborg Rein Advokatfirma AS is acting as legal counsel to the Company.
The above initiatives are pursued to secure the company's going concern and address a challenging liquidity position stemming from (i) overdue accounts payables; (ii) the possibility of a negative outcome of the UK legacy tax case with the His Majesty's Revenue and Customs (HMRC); (iii) a scheduled Special Periodic Survey (SPS) of the rig Paul B Lloyd Jr. of net USD 20 million; and (iv) increased operational expenses with respect to the rig Blackford Dolphin.
As a result of the foregoing, the company is amending its financial calendar such that the date of the publication of the company's 2024 annual report will be changed to 30 May 2025.
Source: Dolphin Drilling
