On Friday, PGS faces an RCF stepdown of USD 135m. Without the ability to repay, PGS commenced negotiations with all lenders before the summer. Apart from refusing the USD 600m multi-client offer from TGS, PGS has not updated the market. We believe creditors are in a very challenging situation, new equity will not help (m.cap 13% of EV) and another “amend and extend” appears to be the likely solution. Sell case has largely played out – up to Hold.
14 Sep 2020
Creditors will likely avoid a technical default
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Creditors will likely avoid a technical default
On Friday, PGS faces an RCF stepdown of USD 135m. Without the ability to repay, PGS commenced negotiations with all lenders before the summer. Apart from refusing the USD 600m multi-client offer from TGS, PGS has not updated the market. We believe creditors are in a very challenging situation, new equity will not help (m.cap 13% of EV) and another “amend and extend” appears to be the likely solution. Sell case has largely played out – up to Hold.