Deep Sea Supply acquires 10 PSVs from PSV Holding - launches private placementVessel & ROV News // June 3, 2014
Deep Sea Supply Plc has entered into an agreement to acquire 10 PSVs. The total price paid for the 10 vessels including remaining CAPEX is US$366 million, the total broker value for the vessels is US$419 million.
Deep Sea Supply will raise approximately US$200 million through a private placement to partly finance the acquisition of the vessels. The private placement is fully underwritten by the company's largest shareholder, Hemen Holding Ltd.
The transaction will increase the current fleet of the company from 30 to 40 vessels and the company's market capitalization from approximately US$200 million to US$400 million.
Deep Sea Supply said the PSVs "will achieve attractive cash break even rates, estimated to be US$10,000 to US$12,000 per day. The current time charter market
for these vessels is around US$23,000 to US$26,000 per day.
The PSVs are being acquired through the acquisition of 100 per cent of the shares in PSV Holding Inc, which is owned by Greenwich Holdings Ltd, an affiliated company of Hemen Holding.
Through the acquisition of PSV Holding, the company will assume ownership of
five PSVs: Sea Tantalus, Sea Titus, Sea Tortuga, Sea Falcon and Sea Flyer, all of which were delivered from Cochin shipyard in India and Sinopacific shipyard in China during 2013 and 1Q 2014. All five vessels are operational. Sea Falcon and Sea Flyer are on five-year contracts (plus options) with Apache in the UK sector of the North Sea. Sea Tantalus was recently awarded a two year (plus options) contract with Nexen in the UK sector of the North Sea. Sea Tortuga has a contract for 13 months (plus options) with ENI North East Africa. Sea Titus is currently mobilizing to West Africa.
PSV Holding also has five vessels under construction, one 4,100 dwt PSV of STX 05-L CD design at Cochin Shipyard Limited in India, and four 4,600 dwt PSV of Ulstein PX 105 design at Sinopacific in China. These newbuilds are due to be delivered during the third and fourth quarters of 2014.