Oceanteam agrees deal to relax covenants

Oslo-listed owner's restrictions on equity and gearing ratios eased.

Oslo-listed offshore shipowner Oceanteam has managed to ease covenant restrictions as part of its refinancing.

The restructured Dutch company said the book equity ratio requirement will be reduced from a minimum of 35% to 28.5% until 1 July. It will then increase 1% every three months.

The gearing ratio will be raised from a maximum of five times to 7.5 times to 31 December. It will then gradually drop to five times from 1 July next year.

The move follows a May restructuring agreement with holders of its $92.5m five-year bond which included repayment in full.

The maturity date has been extended from October this year to 2 May, 2022, with the interest cut from Libor plus 11.25 to 7%.