Oil storage group and tanker operator Titan Petrochemicals is planning to restructure its finances.
The Hong-Kong-listed company is poised to restructure $315.4 million (213.5 million) worth of 8.50% guaranteed senior notes due 2012 to improve its capital structure and extend the notes' maturity.
For each $1,000 in principal of the existing notes, the debt-laden oil trader and shipper proposes to offer: $199 in principal of new notes due 2015, 3,075 new shares and a cash payment of $12.50.
Under the offer, the aggregate principal of the new senior notes due 2015 would be $62.8 million. The company would also issue up to 969.7 million new shares, or about 12.9% of its enlarged share capital. The annual interest rate on the new notes would be 8.50%.
Titan is a provider of oil logistic and marine services in the Asia Pacific region, in particular, China. It has also established both onshore and offshore oil storage facilities in strategic locations in China and South East Asia, including the operation of floating storage units in Malaysian waters serving vessels trading between the Indian Ocean and Pacific Ocean.