American Shipping Company ASA (AMSC) has actually consented to get the Normand Maximus building and construction assistance vessel from Maximus Limited, a business managed by its safeguarded loan providers.
In parallel with the deal, AMSC will certainly participate in a long-lasting bareboat arrangement with a subsidiary of the Norwegian offshore companiesSolstad Offshore Solstad Offshore has actually taken care of the vessel for many years, and also the manage AMSC suggests it will certainly remain to do so.
The complete acquisition rate for the vessel has to do with USD 157 million, and also AMSC anticipates to take shipment in Q4 2022, after “Normand Maximus” has actually completed its present agreement.
“AMSC intends to finance the Transaction through 70% debt and the remaining amount through a combination of cash on hand and new equity. AMSC has already received indicative debt financing terms and has strong support from key stakeholders to finance the Transaction,” AMSC, previously referred to as Aker American Shipping ASA, claimed Thursday.
AMSC CHIEF EXECUTIVE OFFICER, Pål Lothe Magnussen claimed: “We are thrilled regarding this value-accretive purchase as it produces substantial development in capital and also brings about a significant rise in yearly EBITDA. It likewise branches out AMSC’s leasing profile and also includes added steady and also foreseeable go back to our investors.
“We look forward to working together with Solstad as a long-term tonnage provider going forward. We have for some time been looking for the right growth opportunity and we are very satisfied with concluding on this transaction. The transaction is accretive on all key financial metrics and is projected to produce more than 20% annual return on equity with strong running dividend yield. The offshore services market is in recovery and is currently experiencing increased activity and positive outlook. We believe the timing of the transaction is favorable and the risk/reward attractive”.
The Normand Maximus is an offshore construction vessel and has been described as one of the most modern heavy duty subsea construction vessels globally.
The vessel was built in 2016, and has 2600 m2 working deck, an accommodation capacity for 180 people, and a carousel for flexible products with about 4000t capacity. The main workscope is laying flexible pipes and umbilicals and installation of subsea equipment. Additional workscope in the future includes the installation of power cables for the offshore wind industry, AMSC said.
Strong interest in Normand Maximus
In a separate statement, Solstad Offshore confirmed the deal and said it was experiencing strong interest from clients to charter the “Normand Maximus” on shorter and longer contracts after the current time charter expires during the fourth quarter 2022.
“In order to safeguard long-term functional control of the vessel, a subsidiary of SOFF has actually become part of a term sheet for a modified long-term bareboat arrangement for “Normand Maximus” with AMSC, consisting of an acquisition alternative for the vessel,” Solstad Offshore said. The agreed charter term is for five years, with 5+5 years options. The bareboat charter also includes purchase options for the Solstad group after 5 and 10 years.
Lars Peder Solstad, CEO of Solstad Offshore said: “We are extremely happy that we have actually had the ability to safeguard the ongoing accessibility of Normand Maximus to our consumers. Normand Maximus is just one of one of the most advanced vessels within this section, and also an essential part of the Solstad providing to our customers.” (* )
