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    Davie Yards moves forward with construction of accommodation vessels

    Yard News // December 17, 2009

    Davie Yards in Canada has received confirmation that its client Ocean Hotels has finalized a US$100 million loan agreement with Export Development Canada (EDC’) for the financing of two multipurpose accommodation vessels contracted at Davie.

    “Now that our client has secured its financing with EDC, we will be able to restart
    construction of the Ocean Hotels vessels, which has been suspended for a long period” said Steinar Kulen, President and Chief Executive Officer at Davie.

    He continued: “Those newbuilding projects are important to maintain a good level of activity at the yard, and this is good news for our employees and their families. I am glad that they will have a much better Christmas than last year when we were forced to lay off people temporary”.

    In December 2008, the Canadian government authorized EDC to make available up to CAD$380 million in financing for Davie. From this facility, Davie’s client, Cecon, has already entered into a US$200 million senior secured loan for financing their three offshore construction vessels on contract with Davie.

    Now Davie’s other client, Ocean Hotels has entered into a senior secured loan for US$100 million. In July this year, Davie entered into a loan agreement with EDC of up to US$40 million as pre-funding of the US$ 100 million loan to Ocean Hotels to secure design, engineering and supplies to the project. This loan has been repaid in full with the first payment from Ocean Hotels.

    “We are very pleased with the continued support to Davie from the Government of Canada and EDC”, stated Mr Kulen.

    Delivery of Ocean Hotels vessels is planned for 2011. Davie has a total backlog of five vessels.


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