Tuesday, August 29, 2000 

Farstad declares option for second PSV 
Norway’s Farstad Supply AS, has declared its option at Simek AS for delivery of a platform supply vessel  in October 2001.  

The vessel is of the same design as the lengthened UT 745 currently under construction at the yard for delivery in  May 2001.  

Title XI financing for Cal Dive MSV 
Cal Dive International, Inc. reports that it has completed a low-interest, long-term financing for the construction of its technologically advanced multi-service vessel, the Q4000. The U.S. government is guaranteeing the $138.5 million financing under Title XI of the Merchant Marine Act, as administered by the Maritime Administration (MARAD).  

The Q4000, under construction at the AMFELS yard in Brownsville, Texas, is a sixth generation semi-submersible that the Cal Dive believes will revolutionize the economics of deepwater completion and construction operations.  

At closing, the company made an initial draw of $40 million, with additional funding to occur at the end of 2000 and upon delivery of the vessel. Proceeds from the initial draw were used to retire all borrowings on the company's revolving line of credit and fund current construction calls of the Q4000. Govco Incorporated, a unit of Citigroup, handled the sale of the notes which are backed by the full faith and credit of the United States government.  

Jim Nelson, Chief Financial Officer of Cal Dive, stated, "This attractive financing vehicle offers the advantages of a relatively low interest rate, initially 6.9%, and mortgage style amortization over a 25-year period. It's also important that we have four years to lock in the fixed rate for the permanent financing, and that a portion of the principal repayment is secured solely by the vessel. Since Cal Dive had already funded $67 million of the vessel's estimated $150 million construction cost through internally generated cash flow, the $25 million net balance from this first draw is available for general corporate purposes."  

Spa resort firm plans cruise ships 
Health spa resort operator Canyon Ranch,is forming a new division that will design and operate a line of cruise ships "dedicated to health, healing and adventure." Each ship "will be a health resort from stem to stern." The  ships will be operated as companion properties to the existing Canyon Ranch health resorts in Tucson, Arizona, and Lenox, Massachusetts. 

Agreements have been signed with Societa Esercizio Cantieri shipyard in Viareggio, Italy, for construction of the first two vessels, Quest I and Quest II.  S.E.C. was the contractor for the construction of Silver Sea's five-star vessels, Silver Cloud and Silver Wind. Preliminary plans call for the ships to have a worldwide itinerary, with inaugural launch scheduled for 2002.  

The 25,000 grt Quest I and Quest II will  each carry only 320 guests in 180 cabins. Each ship will feature large all-outside suites, 90% of which will have private verandas. All suites will be lavishly appointed, complete with entertainment centers, luxurious private baths and ample closet space.  

A staff of more than 300 on each ship will include 120 spa and health professionals.

The ships will each carry a floating lagoon for swimming, sunning and water sports -- including jet skiing, canoeing, kayaking and scuba diving. Each ship will also carry a 12-person underwater observation vehicle for unique views of the ocean below.  

Headquarters for Canyon Ranch at Sea will be in Tucson, Arizona. Operational offices will be located in South Florida and Athens, Greece. The executive team of the Canyon Ranch at Sea will be announced in the near future.  

Crescent Real Estate Equities Company (NYSE: CEI), one of the countries largest real estate trusts, (REIT), has an interest in the Canyon Ranch at Sea venture and as owner of the sites on which the two original Canyon Ranch Health Resorts are located in Tucson, Arizona and Lenox, Massachusetts. Crescent is a partner in all new Canyon Ranch opportunities.  


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