Oceanteam ASA’s Vessel Owning Companies create Cash Flexibility by Deferral of January’s Repayment
Jan 20 2020
Under the existing terms of the Facility Agreement (the “Facility Agreement”) for CSV Bourbon Oceanteam 101 and CSV Southern Ocean (the “Vessels”), Oceanteam and Bourbon, the joint owners of the Vessels (the “Owners”), are allowed to defer repayment instalments under the Facility Agreement at no additional costs or covenants. In light of this pre-agreed mechanism, the Owners chose to create greater cash flexibility at an early stage whilst Vessels are on hire and to defer the January 2020 loan instalments until the end of the Loan facility in 2022. The funding, that becomes available as a result of the deferral will allow for greater cash flexibility and can be used to perform the operational maintenance program on both Vessels later this year if and when the vessels become available.
As a result of the uninterrupted servicing of the loans under the Facility Agreement since 2012, the average Loan to Value hereunder is 27%. The Vessels are currently on hire in Angola and India respectively.
In accordance with the IFRS accounting rules, reporting of the vessel loan (“Loan”) in the annual accounts will change compared to the 2018 Annual Report. The Loan will be divided in a short term repayment profile and long term repayment profile (> 1 year) as opposed to all short term as was reported in previous year’s Annual Report.
About Oceanteam ASA
The Company is an investment platform for offshore wind renewables, subsea and marine contracting services. Oceanteam is currently comprised of two operating segments, Oceanteam Shipping and Oceanteam Solutions. Oceanteam Shipping co-owns, charters and manages two high-end versatile deep-water construction support vessels, active in the offshore wind and subsea segments. Oceanteam Solutions is a service provider to the renewable offshore wind industry with the supply of rental equipment and integrates services for the transportation, storage and handling of subsea cables. Oceanteam has been active in the industry as an offshore solutions provider for over twelve years.
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