Norwegian offshore seismic vessel player Shearwater Geoservices has signed an agreement with lenders and key stakeholders to amend its capital structure, improving its free liquidity and strengthening its financial position, according to Splash247.
Transaction Details
The agreed equity capital injection and debt amendments, in addition to the previously announced divestment of SW Baret, materially improve the company’s liquidity outlook, reduce near- to medium-term debt service requirements, and provide increased financial flexibility to support ongoing operations and value creation, the company stated.
Under the transaction, Shearwater will receive a capital contribution of $40m in new equity or a subordinated shareholder loan. Additionally, $25m in instalments, previously deferred from the second half of 2025 until January 2027, have been extended to the facilities’ final maturity in April 2029.
Covenant Adjustments
| Covenant | Previous Terms | Amended Terms |
|---|---|---|
| Minimum cash covenant | Not specified in source | Immediately reduced to $40m, further to $30m in Q3 2026 |
| Leverage ratio covenant | Existing (not specified) | Suspended for two years |
| Minimum equity ratio covenant | Not specified in source | Reduced to 30% |
| From Q2 2028 | Leverage ratio covenant | Replaced by a free cash flow-to-debt service covenant |
All covenant amendments relate solely to the bank facilities. The bond facilities remain unchanged and continue to be governed by their existing terms, the source reported.
Implications for Shearwater
This restructuring provides Shearwater with immediate liquidity relief and a longer runway to manage its debt obligations. The suspension of the leverage ratio covenant for two years and the reduction of minimum cash and equity covenants give the company more operational breathing room. The shift to a free cash flow-based covenant from the second quarter of 2028 aligns testing with the company’s actual cash generation, which is critical for capital-intensive offshore seismic operations.
The $40m capital injection, whether as equity or a subordinated loan, bolsters the balance sheet and supports ongoing vessel operations. The extension of $25m in deferred instalments to 2029 reduces near-term cash outflows.
Watch List
- Divestment of SW Baret: The previously announced sale of this vessel is still expected to close, further improving liquidity.
- Covenant compliance: Shearwater must maintain minimum cash of $40m immediately and $30m from Q3 2026.
- Debt maturity profile: With the extension to April 2029, upcoming maturities are pushed out, but bond facilities remain unchanged.
For freight forwarders and logistics managers, while Shearwater is an offshore seismic specialist rather than a container carrier, this restructuring signals ongoing financial stress in the maritime sector and the importance of monitoring counterparty risk among vessel operators.
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