Posted on December 4, 2024
HOUSTON, Dec. 02, 2024 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced that it has entered into a new senior secured term loan of up to $391.0 million with an affiliate of EnTrust Global (the “2024 SMFH Credit Facility”) and separate agreements to build two platform supply vessels (“PSVs”) for a contract price of $41.0 million per vessel (the “Shipbuilding Contracts”). The PSVs are each 4,650 tons deadweight with a 1,000 square meter deck area and equipped with medium speed diesel engines and an integrated battery energy storage system for higher fuel efficiency and lower running costs. The 2024 SMFH Credit Facility consolidates the Company’s debt capital structure into a single credit facility maturing in the fourth quarter of 2029 and provides financing for the Shipbuilding Contracts. The Company also announced the entry into definitive agreements to sell two anchor handling towing and supply (“AHTS”) vessels for total proceeds of $22.5 million.
The proceeds from the 2024 SMFH Credit Facility will be used to, among other things, refinance $203.7 million of principal indebtedness under multiple secured debt facilities and $125.0 million of unsecured indebtedness due in 2026, inclusive of $35.0 million of convertible debt. The 2024 SMFH Credit Facility also provides up to $41.0 million in borrowings to finance up to 50% of the Shipbuilding Contracts. Borrowings under the 2024 SMFH Credit Facility will bear interest at a rate of 10.30% per annum and principal will be repaid in an initial quarterly installment of $5.0 million in March 2025, followed by quarterly installments of $7.5 million for the refinanced indebtedness and 2.13% of the principal amount borrowed to fund the Shipbuilding Contracts.
Additional information about the terms of the 2024 SMFH Credit Facility can be found in our Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission.
John Gellert, SEACOR Marine’s Chief Executive Officer, commented: “I am pleased to announce these transactions of strategic importance to the Company. The new financing with EnTrust Global consolidates all our debt under a single facility maturing in 2029 and addresses $125.0 million of near-term maturities previously due in 2026 to The Carlyle Group. The early redemption of $35.0 million of convertible debt eliminates approximately 10% of dilution overhang on the Company’s common stock. The new financing also allows us to retain financial flexibility and support our growth initiatives by financing up to 50% of our order of two PSVs. This order comes at a competitive price point and with an attractive delivery schedule of the fourth quarter of 2026 and first quarter of 2027 for each of the PSVs. These vessels expand and complement our PSV fleet as we implement our asset rotation strategy aimed at renewing our fleet with high-specification, environmentally efficient assets to replace older, lower specification assets. We will partly fund this new construction program with $22.5 million of proceeds from the sales of our last remaining AHTS vessels, marking our exit from the AHTS asset class effective January 2025. I would like to extend my gratitude to EnTrust Global, our sole lender, for their continuing support, as well as The Carlyle Group, for their partnership as a lender since 2015.”
SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.
