Nordic American Offshore Ltd. Announces Agreement with Lenders, Acquisition of Additional Vessels for Consideration in Common...
08 April 2019 - 7:52PM
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
Attachment
Nordic American Offshore Ltd. (NYSE:NAO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nordic American Offshore Ltd. (NYSE:NAO)
Historical Stock Chart
From Jul 2023 to Jul 2024