U.S. offshore support vessel provider Seacor Marine has entered into a second amendment and conditional payoff agreement with JPMorgan Chase Bank.
Seacor said on Friday that the agreement was entered by the company’s indirect subsidiary Falcon Global USA as the borrower. As of 10 June 2021, there was $117.3 million of principal outstanding under the Falcon Global credit facility.
Under the terms of the conditional payoff agreement, the $117.3 million of the principal currently outstanding will be deemed satisfied in full upon the payment to the lenders of a total of $50 million comprised of $25 million to be paid at the signing of the conditional payoff agreement and $25 million to be paid on or before 15 December 2021.
The company added that hull and machinery insurance proceeds received by the lenders in respect of the Seacor Power incident will be set off against and satisfy the requirement to make the second $25 million payment. Such insurance proceeds are expected to be received before 15 December.
Upon final payment, the Falcon Global credit facility will terminate, and the mortgages and security arrangements will be released concerning the nine liftboats securing the obligations thereunder. Seacor Marine has provided a limited guaranty for the obligations of Falcon Global under the conditional payoff agreement.
After giving effect to the payoff of the credit facility and based on Seacor Marine’s total debt reported as of 31 March 2021, the company’s total debt will be reduced by $112.5 million, resulting in total debt of $354.2 million. Seacor Marine’s net debt will decrease by $87.5 million on the same basis upon final payment.
John Gellert, Seacor Marine’s CEO, said: “This transaction significantly de-levers our balance sheet and is an accretive use of our liquidity as we reset the capital structure of our liftboat fleet. It also further advances our previously stated strategy to maintain full financial flexibility and our commitment to U.S.-flagged liftboats.
“We remain focused on our response to the Seacor Power incident and expect to complete the recovery efforts in July. We continue to grieve for our crew members, partners and the loved ones of those who were lost”.
To remind, the Seacor power liftboat capsized in the U.S. Gulf of Mexico due to severe weather in mid-April.
Six personnel were rescued by the Coast Guard and Good Samaritan vessels, and the bodies of six fatally injured personnel were recovered. Seven remain missing.
As previously reported, after over seven days of search efforts for the missing crew members of the capsized liftboat, the U.S. Coast Guard suspended the search.
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