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    Superior Offshore International completes sale and charter-back of Superior Achiever

    Vessel & ROV News // January 31, 2008

    Superior Offshore International has announced that it has completed the sale and charter-back of Superior Achiever with Hornbeck Offshore Services.

    Achiever, which was successfully launched on January 19th 2008, is a DP 3 deepwater construction and dive support vessel which is due to be delivered in late 2008.

    Achiever's sale price was approximately US$70 million, which represents Superior Offshore's investment to date in the vessel.

    Superior Offshore will use US$56.2 million of the proceeds to repay its term loan obligation to Fortis Bank, which includes US$55.0 million of principal and US$1.2 million of accrued interest and prepayment fees, US$2.6 million to settle an interest rate swap related to the term loan, US$0.9 million for charter hire payments due to Hornbeck for a separate vessel and US$0.5 million for certain transaction expenses. The remaining US$9.4 million of proceeds will be used to repay borrowings under Superior Offshore's senior secured credit facility.

    After the application of the proceeds, Superior Offshore will have no outstanding term debt and approximately US$15 million outstanding under its senior secured credit facility.

    The transaction will reduce Superior Offshore's 2008 capital expenditure requirements by approximately US$30 million.

    Superior Offshore will take delivery of Achiever or another acceptable vessel under a five-year time charter with Hornbeck.

    Superior Offshore will have the option to terminate the charter with 90 days' advance notice prior to the end of each six-month period within the term.

    Superior Offshore and Hornbeck are also exploring non-exclusive joint marketing and co-operation agreements for new business opportunities that would leverage the complementary resources of the two companies.

    Superior Achiever will be capable of working in harsh or deepwater environments.

    Superior Offshore expects to deploy the vessel by the end of this year to international markets and/or deepwater Gulf of Mexico projects. 

     

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