SEACOR Marine Announces Agreement to Consolidate SEACOSCO Joint Venture

HOUSTON, June 04, 2020 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced that a wholly-owned subsidiary of the Company entered into a definitive sale and purchase agreement to acquire the remaining 50% of the equity interests in SEACOSCO Offshore LLC (“SEACOSCO”) that it did not already own from affiliates of COSCO SHIPPING GROUP (“COSCO”).  As a result of the purchase, SEACOR Marine will own 100% of SEACOSCO.  Subject to the satisfaction of the conditions to closing, the transaction is expected to close in June 2020.

The acquisition further modernizes SEACOR Marine’s fleet through consolidating the Company’s ownership of eight Rolls-Royce designed platform supply vessels (“PSVs”) from COSCO Shipping Heavy Industry (Guangdong) Co., Ltd. (the “Shipyard”).  Six of the PSVs are of UT 771WP design, with 4,400 tons deadweight capacity, and two are of UT 771CD design, with 3,800 tons deadweight capacity.  SEACOSCO has taken delivery of seven of these PSVs, each with a 2018 or 2019 year of build, and expects to take delivery of the final UT 771WP design PSV later this year.  Each of the UT 771WP design PSVs is equipped with a state-of-the-art battery energy storage system designed to reduce fuel consumption and enhance the safety and redundancy of the vessels’ systems. 

As consideration for the acquisition of the equity interests, the Company will pay an aggregate purchase price of $28.15 million.  The purchase price will be paid in cash as follows: (i) $8.445 million at or prior to the closing of the transaction, (ii) annual installment payments of $1.0 million, $2.5 million and $2.5 million in the first three years after the signing date and (iii) the remaining purchase price of $13.705 million at the end of four years after the signing date. The deferred portion of the purchase price accrues interest at a fixed average rate of 6.0% per annum.  COSCO will obtain a second lien mortgage on the vessels to secure the payment of the deferred portion of the purchase price, and the Company will provide a limited deficiency guarantee solely with respect to the short-fall in vessel collateral value, if any, in the event COSCO exercises its remedies under the mortgages (a “Limited Deficiency Guarantee”).