Singapore's Keppel to buy new bonds of struggling KrisEnergy

KrisEnergy

03/11/2016 04:04

SINGAPORE, Nov 3 (Reuters) - Rigbuilder Keppel Corp 
 KPLM.SI  on Thursday said it will subscribe to a bond offer by 
KrisEnergy Ltd  KRIS.SI , potentially increasing its majority 
holding and throwing a lifeline to the debt-laden oil and gas 
explorer. 
    Keppel said it could raise its stake to as much as 67.33 
percent from 40 percent via an up to S$140 million ($101 
million) preferential offering of zero-coupon secured notes 
coupled with warrants that KrisEnergy announced earlier on 
Thursday.  urn:newsml:reuters.com:*:nFWN1D317D 
    Shares of KrisEnergy rose as much as 9 percent in morning 
trade. Keppel was up 0.4 percent whereas the benchmark Straits 
Times Index  .STI  was down by an equal amount. 
    KrisEnergy is among a growing list of Singaporean firms 
struggling to meet debt commitments due to tumbling global oil 
prices. 
    On Thursday, it also said it would seek to extend the 
maturities of its S$130 million bond due in 2017 and S$200 
million bond due in 2018 by five years. It proposed reducing the 
bonds' coupons to 4 percent from 6.25 percent and 5.75 percent 
respectively. 
    KrisEnergy also said it had agreed with DBS Bank Ltd to 
amend terms and covenants of its revolving credit facility, 
including extending the maturity to June 2018. 
    The proposed restructuring, if successful, would yield "a 
stable and sustainable capital structure, reduced short-term 
cash debt service obligations and greater liquidity," KrisEnergy 
said. 
    The firm reported a net loss for the third quarter, compared 
with a profit a year earlier.  urn:newsml:reuters.com:*:nFWN1D3175 
    ($1 = 1.3833 Singapore dollars) 
 
 (Reporting by Aradhana Aravindan; Editing by Christopher 
Cushing) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: KEPPEL CORP KRISENERGY/