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Superior Offshore International completes sale and charter-back of the Superior

Posted on 29.01.2008 - 14:00 EST in GENERAL NEWS by Rons_ROV_Links

Superior Offshore International completes sale and charter-back of the Superior Achiever with Hornbeck Offshore ServicesSuperior Offshore International, Inc. today announced that it has completed the sale and charter-back of the Superior Achiever with Hornbeck Offshore Services LLC, a wholly owned subsidiary of Hornbeck Offshore Services, Inc. ("Hornbeck"), on the terms previously disclosed. The Achiever, which was successfully launched on January 19, 2008, is a DP-III deepwater construction and dive support vessel that is under construction and is expected to be delivered in late 2008.

The Achiever's sale price was approximately $70 million, which represents Superior Offshore's investment to date in the vessel. Superior Offshore will use $56.2 million of the proceeds to repay its term loan obligation to Fortis Bank, which includes $55.0 million of principal and $1.2 million of accrued interest and prepayment fees, $2.6 million to settle an interest rate swap related to the term loan, $0.9 million for charter hire payments due to Hornbeck for a separate vessel and $0.5 million for certain transaction expenses. The remaining $9.4 million of proceeds will be used to repay borrowings under Superior Offshore's senior secured credit facility. After the application of the proceeds, Superior Offshore will have no outstanding term debt and approximately $15 million outstanding under its senior secured credit facility. The transaction will reduce Superior Offshore's 2008 capital expenditure requirements by approximately $30 million.

Superior Offshore will take delivery of the Achiever or another acceptable vessel under a five-year time charter with Hornbeck. Superior Offshore will have the option to terminate the charter with 90 days' advance notice prior to the end of each six-month period within the term.

Superior Offshore and Hornbeck are also exploring non-exclusive joint marketing and cooperation agreements for new business opportunities that would leverage the complementary resources of the two companies.

The Superior Achiever will be capable of working in harsh or deepwater environments. Superior Offshore expects to deploy the vessel by the end of this year to international markets and/or deepwater Gulf of Mexico projects.

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