Debt Levels

Much has been made of MMA Offshore’s debt levels. These debt levels need to be considered in context.

MMA Offshore’s debt to EBITDA ratio is lower than the level for many of the companies in the Peer Group.

In addition, through a close working relationship with its lenders, MMA Offshore achieved an important deferral of fixed principal repayments on its debt until the expiry of the facility in September 2019.

That deferral has provided time to progress the implementation of an appropriate long term capital management strategy and will enable ALL shareholders to participate in any improvement in market conditions. MMA Offshore continues to have the full support of its lenders, which is crucial to the current and future viability of its business.

Did you know?

Despite the challenging market conditions, MMA Offshore has reduced its debt by approximately $124M since FY2014.

Debt over past 12 months to EBITDA ratio as of June 2017

Debt over past 12 months to EBITDA ratio as of June 2017

Source: Pareto Securities Report, “Analysis of certain assertions made by Halom”, 27 October 2017