Superior Offshore to sell and charter back newbuildVessel & ROV News // December 21, 2007
Superior Offshore International has announced that it has signed a Letter of Intent with a strategic (as yet un-named) partner for ownership of Superior Achiever, a DP 3deepwater construction and dive support vessel that is expected to be delivered in late 2008.
The transaction would enable Superior Offshore to pay off its current term loan obligation and significantly reduce its 2008 capital requirements.
The purchaser, an international provider of offshore supply vessels serving the offshore oil and natural gas industry, has agreed to time charter Superior Achiever or another acceptable vessel to the company for a five-year term, with the company having the option to terminate the charter on a six-month rolling basis.
The LOI also provides that the company and the purchaser would agree to negotiate the establishment of a non-exclusive joint marketing and co-operation agreement and that the parties would endeavour to seek mutually beneficial business opportunities utilizing the complementary joint resources of both parties.
Under the LOI, Superior Offshore expects to realize proceeds of over US$70.0 million from the sale of the vessel, which would be used to repay in full the US$55.0 million, plus interest and any other obligations, currently outstanding under the company's existing senior secured term loan with Fortis Capital Corp.