What you need to know about BW Group's plans: Moody's

Very interesting analysis of a Singapore shipper’s financial situation.

By way of background, Moody's notes that on 30 September 2011, BW Group, a diversified shipping firm based in Singapore, said it is seeking bondholders’ consent to amend certain terms of its bonds due in 2017. The company is offering bondholders a priority claim over an exclusive pool of vessels having fair market value of 125% of the face value of the bond outstanding. Bondholders’ consent would allow BW to incur more secured debt at the level of either the parent company or a subsidiary/ joint-venture and to enter into sale and leaseback transactions.

BW also said it is arranging a seven-year, US$1.5 billion, senior, secured, revolving credit facility that will give creditor banks a priority claim over a separate pool of vessels. The proposed arrangements will not have an impact on BW’s bond ratings. Below, Moody’s answers some frequently asked questions from investors and intermediaries concerning BW’s announcement.