Sale and lease back deal for PGS Apollo - company still in good shapeVessel & ROV News // June 4, 2015
Petroleum Geo-Services (PGS) has entered into a sale and leaseback agreement of PGS Apollo, the only non-Ramform designed 3D vessel in the PGS fleet, and the vessel that the company says is best suited for such a transaction.
The sale and leaseback agreement is between PGS and Offshore Merchant Partners (OMP) on a 10-year bareboat charter, with an option for a five-year extension at a reduced rate.
PGS has the option to acquire the vessel after end of year five and eight, but no obligation. The lease will be reported as an operating lease.
PGS said it has a solid financial position with a liquidity reserve of US$558.9 million as of end the first quarter of 2015. The proceeds from the transaction amount to US$80 million, before transaction costs, and will strengthen the financial position of PGS further, making the company better positioned to navigate in the current challenging market.