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Note 9 - Debt
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Debt Disclosure [Text Block]

(9)

DEBT

 

The following is a summary of all debt outstanding:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2020

  

2019

 

Secured notes:

        

8.00% Senior secured notes due August 2022 (A) (B) (C)

 $197,049  $224,793 

Troms Offshore borrowings (D):

        
NOK denominated notes due May 2024  8,683   10,260 

NOK denominated notes due January 2026

  16,746   20,788 

USD denominated notes due January 2027

  17,816   20,273 

USD denominated notes due April 2027

  20,240   21,545 
  $260,534  $297,659 

Debt premiums and discounts, net

  (4,779)  (8,725)

Less: Current portion of long-term debt

  (9,576)  (9,890)

Total long-term debt

 $246,179  $279,044 

 

 

(A)

As of September 30, 2020 and  December 31, 2019 the fair value (Level 2) of the Secured Notes was $193.9 million and $237.6 million, respectively.  

 

(B)

The $26.4 million restricted cash on the balance sheet at September 30, 2020, represents approximately 65% of net proceeds from asset dispositions since the date of the last tender offer and is restricted by the terms of the Indenture. In connection with the asset dispositions, we have commenced a mandatory tender offer for $28.7 million aggregate principal amount of Secured Notes in accordance with the Senior Notes Indenture, which will be terminated if the consent solicitation described below is approved by the requisite holders of Senior Notes, allowing the tender offer for $50 million aggregate principal amount of Senior Notes described below to proceed.

 (C)During the three and nine months ended September 30, 2020, we repurchased $27.7 million of the Secured Notes at a discount of $1.5 million in open market transactions.

 

(D)

We pay principal and interest on these notes semi-annually.  As of September 30, 2020 and  December 31, 2019, the aggregate fair value (Level 2) of the Troms Offshore borrowings was $62.6 million and $72.9 million, respectively. The weighted average interest rate of the Troms Offshore borrowings as of September 30, 2020 was 5.0%. 

 

We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, tender offers, exchange offers, redemptions, one or more additional offers, or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

 

In October 2020 we executed a consent to conform the TROMS offshore borrowing covenants to those of the Senior Secured Notes.  As a condition of this consent, we will be prepaying approximately $12.4 million of the TROMS debt in the fourth quarter of 2020 and another $8 million in the first half of 2021.  If the company were to make additional prepayments of Senior Secured Notes, we would be obliged to make additional prepayments of Troms debt up to a cumulative balance of $35 million.

 

On  November 3, 2020, we launched a consent solicitation and concurrent tender offer for $50 million aggregate principal amount of Senior Notes. We are soliciting consents to approve amendments to several covenants under the Senior Notes Indenture, as well as a waiver of  the mandatory tender offer discussed in Item B under the Debt table above.