| Torch
Offshore announces completion of finance facility
Posted: 14 May 2003
New Orleans, USA — Torch Offshore, Inc.
announced today that the $60.0 million finance facility with Regions
Bank and Export Development Canada (EDC) to fund the conversion
of the Midnight Express into a DP-2 offshore pipelay and construction
vessel has been completed.
The Finance Facility provides for a 15-month credit line equally
funded by Regions Bank and EDC ($30.0 million participation by each).
At the completion of that 15-month period, any borrowings outstanding
under the Finance Facility will convert to a three-year term loan.
As part of the Finance Facility, Regions Bank has restructured
its $25.0 million asset-based five-year revolving credit facility
with the Company to incorporate this commitment into the Regions
Bank $30.0 million portion of the Finance Facility.
The $10.0 million accounts receivable-based working capital facility
from Regions Bank remains available to the Company.
The Finance Facility is also supported by a Structured Finance
Facility granted by Industry Canada, which will provide approximately
the equivalent of $3.7 million of interest rate buy down funds to
be applied to the term loan portion of the Finance Facility.
The Midnight Express is at the Davie Maritime Inc. shipyard in
Quebec, Canada, which is the shipyard performing a substantial part
of the conversion.
Following the completion of the Davie Maritime Inc. work, which
is expected in December 2003, the Company's patented pipelay system
and other equipment will be installed on the Midnight Express.
The Company expects the Midnight Express to be part of its active
fleet in the first quarter of 2004.
Lyle G. Stockstill, Torch Offshore, Inc. Chairman and Chief Executive
Officer, commented, "We are pleased to announce the completion
of this $60.0 million facility which will be an integral part of
the conversion of the Midnight Express.
We are very appreciative of the support from Regions Bank, Export
Development Canada, and Industry Canada."
Established in 1978, Torch Offshore, Inc. is involved in offshore
pipeline installation and subsea construction for the oil and natural
gas industry. Torch Offshore, Inc. is expanding beyond its established
shallow water niche market in order to serve the industry's worldwide
growing needs in the deep waters.
Posted by Richard Price,
Editor Pipeline Magazine
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