SEACOR Marine Announces Agreement to Consolidate SEACOSCO Joint Venture - Seite 2

The PSVs were acquired by vessel owning subsidiaries (“SPVs”) of SEACOSCO pursuant to existing deferred purchase agreements with the Shipyard (“DPAs”) under which approximately $105 million is currently outstanding.  The DPAs provide for amortization of the purchase price for each vessel over a period of 10 years from delivery at a floating interest rate of three-month LIBOR plus 4.0%.  The payment obligations of the SPV under the DPA for each vessel are secured by a first lien mortgage on the vessel and a pledge of the SPV’s equity, and the Company will provide a Limited Deficiency Guarantee to the Shipyard with respect to such obligations.  The DPAs are not otherwise cross-collateralized to the assets of SEACOSCO or the Company.

John Gellert, SEACOR Marine’s Chief Executive Officer, commented:

“We are grateful for the support of the COSCO SHIPPING GROUP.  Their high-quality vessels have proven themselves in the marketplace and together, we outfitted the majority of the vessels with a hybrid battery system that delivers fuel savings and environmental benefits to our customers.  These vessels will be among the most fuel efficient and modern tonnage of the worldwide supply vessel fleet for the foreseeable future.

“Consolidating the operating results of the joint venture will be a net positive for SEACOR Marine from closing of the transaction.  Based on the current charters and forward charter commitments for the SEACOSCO vessels, we expect the vessels to generate approximately $7.0 million EBITDA for the balance of 2020 and approximately $18.5 million EBITDA in 2021, the first year all the vessels will be delivered and in our fleet for a full year, in each case subject to applicable charterer termination provisions.

“We believe the debt secured by these vessels has attractive terms.  We expect the vessels to generate cash for SEACOR Marine, net of scheduled debt amortization as well as the obligations under the DPAs.  The majority of the debt has an average life greater than six years.  This transaction is an exciting step in the growth of SEACOR Marine, significantly growing our asset and equity base.”

SEACOR Marine provides global marine and support transportation services to offshore oil and natural gas and windfarm facilities worldwide.  SEACOR Marine and its joint ventures operate a diverse fleet of offshore support and specialty vessels that deliver cargo and personnel to offshore installations; handle anchors and mooring equipment required to tether rigs to the seabed; tow rigs and assist in placing them on location and moving them between regions; provide construction, well workover and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance and repair.  Additionally, SEACOR Marine’s vessels provide accommodations for technicians and specialists, safety support and emergency response services.