Nordic American Offshore Ltd. Announces Agreement with Lenders, Acquisition of Additional Vessels for Consideration in Common...
08 April 2019 - 6:59PM
Hamilton, Bermuda-April 8, 2019-Nordic American
Offshore Ltd. (the "Company" or "NAO") announced today that it has
reached agreement with the lenders under the Company's $150
million Revolving Credit Facility, dated March 16, 2015 (the
"Credit Facility") pursuant to which the lenders have agreed, upon
satisfaction of certain conditions precedent by the Company, to the
extension of waivers up until January 31, 2020.
The Company has also announced that the lenders
have committed, upon satisfaction of certain conditions precedent
by the Company, to a new $ 132.9 million term loan facility with
maturity of December 6, 2023 to refinance the Credit Facility,
which has an outstanding balance of $132.9 million as of the date
of this press release.
As part of the above agreements, the Company will
acquire thirteen vessels from Scorpio Offshore Holdings Inc. for
consideration in common shares worth approximately $ 22.6 million
in aggregate.
Additionally, the Company has announced that it
has entered into a common stock purchase agreement (the "Equity
Line of Credit") with two affiliated entities which are accredited
investors. The Equity Line of Credit provides for $ 20 million to
be available on demand to the Company in exchange for common shares
priced at 0.94 multiplied by the then-prevailing 30-day trailing
VWAP. Clarksons Platou AS acted as advisor in this
transaction.
Emanuele A. Lauro, Chairman and Chief Executive
Officer, commented "Today marks a new beginning for Nordic American
Offshore. With the shared commitment of our lenders and
major shareholders, we are taking substantial action to reduce our
overall leverage and provide visibility into our liquidity and our
debt profile. As a result, the Company gains
much-needed financial and operational flexibility at a time when
the offshore market is showing incipient signs of
improvement. In May we will have our entire 10 vessel
PSV fleet operating and employed at rates significantly higher than
those which prevailed one year ago. In the coming
months we will be taking additional steps to improve our efficiency
and deliver value to our shareholders, many of whom so patiently
supported the Company through the recent months."
About Nordic
American Offshore Ltd.
NAO is a Bermuda-based company
listed on the New York Stock Exchange. It owns and operates a fleet
of 10 modern harsh environment offshore supply vessels built with
the latest technology available. From its operating offices in
Norway and elsewhere, NAO is positioned to support a global
business and take advantage of the expected upturn in oil service
activity in the North Sea and globally. Additional information
about the Company is available on the Company's website at
www.nao.bm.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press
release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about
their business. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts.
The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation.
The words "believe," "anticipate," "intend," "estimate,"
"forecast," "project," "plan," "potential," "may," "should,"
"expect," "pending" and similar expressions identify
forward-looking statements.
The forward-looking statements in
this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management's examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or
projections. We undertake no obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Important factors that, in our
view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand in the PSV market, as a result of changes in the general
market conditions of the oil and natural gas industry which
influence charter hire rates and vessel values, demand in platform
supply vessels, our operating expenses, including bunker prices,
dry docking and insurance costs, governmental rules and
regulations or actions taken by regulatory authorities as well as
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
the availability of financing and refinancing, vessel breakdowns
and instances of off-hire and other important factors described
from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
Contact
Information:
Nordic American Offshore Ltd.
+377 9798 5717 (Monaco)
+1 646 432 3315 (New York)
Web-site: www.nao.bm
Press release (PDF)
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic American Offshore Ltd via
Globenewswire
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