Hornbeck Offshore to acquire Sea Mar fleet from NaborsNews // July 30, 2007
Hornbeck Offshore Services in the US has announced that it has entered into a definitive asset purchase agreement with certain affiliates of Nabors Industries Ltd to acquire 20 OSVs and their related business (the 'Sea Mar Fleet') for a cash consideration of US$186.0 million, plus the cost of any fuel inventory on such vessels.
The Sea Mar Fleet consists of 10 200 class DP 1 new generation OSVs and ten conventional OSVs.
The company has also agreed to purchase one 285ft DP 2 new generation OSV currently under construction at a domestic shipyard with an anticipated fourth quarter 2008 delivery.
The expected cost of this newbuild vessel, prior to allocation of construction period interest, is approximately US$34.0 million, of which about US$7.3 million will be paid to Nabors at closing.
All of the vessels to be acquired by Hornbeck Offshore are US flagged and qualify for US coastwise trade under the 'Jones Act' except for one of the conventional vessels, which is foreign-flagged.
In addition, under a separate agreement and effective upon closing, Hornbeck Offshore will manage five Nabors-owned Mexican flagged vessels currently operating offshore Mexico.
The Sea Mar acquisition will be funded with cash on-hand and is expected to be immediately accretive to earnings. Cash utilized for this transaction will not alter the company's plans to fund its previously announced newbuild and conversion programmes from remaining cash on-hand and projected cash flows from operations.
Closing is subject to customary conditions, including third party consents and regulatory approvals, and is expected to occur in early August.
Todd Hornbeck, the Company's Chairman, President and CEO, commented: "We are very excited about not only acquiring a well regarded fleet of new generation OSVs, but also the opportunity to attract Sea Mar's highly respected mariners and its shoreside management and support staff to become part of the Hornbeck Offshore team. Sea Mar has an outstanding reputation for quality and safety, and we believe that its operational culture is very similar to our own."
Nabors has earlier signed a Letter of Intent for the Sea Mar fleet with Seacor.