Wintermar lines up $8m share sale

Indonesian offshore shipowner follows debt deal with rights issue.

Indonesia's Wintermar Offshore Marine is continuing its refinancing with a planned share sale.

It has won investor backing to issue 400m new shares to affiliated parties.

The minimum price for the placement will be IDR 258.48 each, giving proceeds of IDR 103bn ($7.67m).

It can sell any time up to 18 May, 2019.

The money will be used to reduce debt, provide working capital and fund business development.

Earlier this week it announced a debt deal with banks to ease its financial burden.

Terms and principal repayments have been amended to more closely align with cash generated, it added.

It said: "The group considered this process necessary in view of the lower outlook on vessel utilisation and charter rates following the sustained impact of lower oil prices globally and the reduction in spending by its major clients in the oil and gas extraction industry."

The deal involves $71.4m of its loans, which is 93% of the long-term bank debt.

A total of $31.7m of principal repayments due in 2017 and 2018 have been rescheduled to between 2018 and 2022.

Wintermar has a fleet of more than 70 offshore support vessels.

It saw first quarter losses increase almost three-fold as it grappled with the crisis in the offshore industry.

The Jakarta-listed company lost $3.9m in the January to March period of 2017 against a loss of $1.4m in the same period a year earlier.