Polarcus allowed to defer payments on seismic vesselsNews // November 11, 2008
Polarcus is still seeking funding for three of its newbuild seismic ships.
Seismic start-up Polarcus has received commitment for a deferred payment arrangement with Drydocks World Dubai in relation to its newbuild vessels NB 70, NB 71 and NB 72 to be built at the Drydocks World Dubai shipyard in the UAE.
Under the terms of this new arrangement the payment installments due under the original shipbuilding contracts will be deferred from the scheduled milestone payment dates to the contractual delivery dates of the vessels.
The total value of the deferred installments amounts to US$99 million. An interest rate of LIBOR + 3 per cent will apply on each deferred installment from the time and on the terms such installment would have been paid under the shipbuilding contracts to the time of actual payment.
"We are very grateful for the trust and belief that Drydocks World Dubai continues to show in Polarcus, both as a key contract party and as a major shareholder through Drydocks World LLC," said Rolf Ronningen, CEO Polarcus.
"The deferred payment arrangement contributes positively to our short-term financial position and provides us with much greater flexibility in timing to secure the remaining project funding."
Polarcus has shipbuilding contracts in place with Drydocks World Dubai for six advanced seismic vessels focused on the more favorable high-end towed streamer seismic market including both the Arctic and wide azimuth markets.
Polarcus has, since inception, successfully raised about US$540 million in new equity and debt financing including sale leaseback and vendor financing.
The first three vessels, NB 66, NB 67 and NB 69, are currently under construction at the Drydocks World Dubai shipyard in the UAE.
The company's shares have been registered and are trading on the Norwegian OTC under the ticker PLCS.