Monday January 19, 01:58 PM
Norway's Petromena drops as creditors control sale
By Richard Solem
OSLO, Jan 19 (Reuters) - Shares in Norwegian oilfield services group Petromena ASA fell as much as 14 percent on Monday after a deal saw bond holders take control of its sale of three deepwater rigs under construction.
Petromena bondholders agreed on Friday to amend loan agreements worth $590 million so that Petromena can secure an additional $300 million financing for completion of its first ultra-deepwater drilling rig by April 2009.
The amendments were made subject to a separate agreement giving bond holders control over sale and marketing of the three rigs with a view of maximising their value.
Petromena said in December that Lloyds TSB Bank and other banks had jointly provided the company with an indicative term sheet, subject to final credit approval, for a $300 million credit facility, related to the first rig.
The rigs are being built by Sembcorp Marine (S51.SI - news) 's Jurong Shipyard in Singapore. All three rigs previously were assigned five-year drilling contracts.
The sharp decline in oil prices in past months has effectively frozen the rig-building market.
By 1319 GMT, Petromena shares had dropped 7.9 percent to 1.40 crowns, giving it a market capitalisation of $30 million. Shares in Petrolia Drilling (Oslo: PDR.OL - news) , which owns 51.5 percent of Petromena, had fallen 4.9 percent.
Sembcorp Marine fell 3.0 percent in Singapore after Credit Suisse downgraded the firm to 'underperform'.
Petromena said in December that still lacked an additional $300 million funding for each of the remaining two rigs that are scheduled for delivery in September and January 2010.
For its third rig, it needs about $83 million of additional cash to meet a Jan. 31 instalment payment, the company said.
Petromena said it was in close dialogue with Jurong Shipyard to postpone the instalment until delivery in 2010.
The company said, alternately, it would look at selling equipment, rigs or seek new sources of credit or equity.
Petromena could not be reached for comment on Monday, but its chief executive, Lars Moldestad, told daily Finansavisen that he was satisfied with the outcome of Friday's bond-holder meeting.
($1=6.877 Norwegian Crown)
(Editing by Karen Foster) Keywords: PETROMENA BONDHOLDERS
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