ASL Marine proposes warrant issue to shareholders and noteholders

ASL Marine said on Monday that it proposed to issue warrants to shareholders and noteholders, with each warrant to give the right to subscribe for a new share at an exercise price of S$0.06 each.

Under the proposal, the company will issue two warrants for every dollar of outstanding principal amount for its series 006 notes and 2.5 warrants for every dollar of outstanding principal amount of the series 007 notes, it said in the filing to SGX before the market open on Monday.

Shareholders will receive one warrant for every two existing ordinary shares, it said.

The warrant issue is subject to approval of the noteholders at meetings of the holders of each series of notes, shareholder approval at an extraordinary general meeting and approval from the Singapore Exchange Securities Trading, ASL Marine said.

The series 006 and 007 notes were issued under its S$500 million multicurrency debt issuance program, it said.

ASL Marine has previously said it is shifting its its focus to ship repair amid the slow shipbuilding recovery and as ship repair has seen increased projects with some upstream players readying their vessels for deployment opportunities.

The company said earlier this year that it was seeking additional credit lines to expand its ship repair operations after a “trying year.”

Shares of ASL Marine ended Friday at S$0.06.

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