Titan Petrochemicals Group plans to restructure US$315.4 million worth of 8.50% guaranteed senior notes due 2012 to improve its capital structure and extend the notes' maturity.
For each US$1,000 in principal of the existing notes, the debt-laden oil trader and shipper proposes to offer: US$199 in principal of new notes due 2015, 3,075 new shares and a cash payment of US$12.50. Under the offer, the aggregate principal of the new senior notes due 2015 would be US$62.8 mln. The company would also issue up to 969.7 mln 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 faced with a crisis of investing in too much at the peak of the cycle in a fleet of tankers, a shipyard in China and numerous oil depots.