Keppel Offshore & Marine (Keppel O&M), a wholly-owned subsidiary of Keppel, has entered into a participation agreement with Clifford Capital that holds Keppel O&M liable for any loss that Clifford Capital suffers on the new credit facility. Floatel’s second-lien (2L) bonds will be converted into warrants with a 10-year term which convert into 12% of the post-conversion equity in Floatel, with a strike price based on an equity value of US$424 million. Shareholders of Floatel prior to the consensual transaction (other than FELS) will have their shares converted into warrants with a 10-year term which convert into 5% of the post-conversion equity in Floatel, with a strike price based on an equity value of US$625 million. In addition, 10% of the common shares in Floatel will be allocated to a management incentive programme for members of the management team of Floatel. According to Keppel, the transaction is not expected to result in any impairment to its carrying value of Floatel which totals $96 million as of FY2020 ended December 2020. Shares in Keppel closed 2 cents or 0.39% higher at $5.15 on March 19.