June 12, 2007
Cecon orders third offshore construction vessel at Davie
Cecon ASA (Oslo OTC: CCON) is exercising the first of four options with Davie Yards ASA. It covers construction of a Vik Sandvik VS4220 Offshore Construction Vessel four delivery in the third quarter of 2009.
Cecon currently has two vessels of this type. worth a total $253 million, on order at Davie's Levis, Quebec, yard.
The first two vessels will each be equipped with a main crane with a lift capacity of 250 t at a water depth of 2,500 m.
The latest ship will be equipped a 400 t offshore crane, rated for 4,000 meters waterdepth but will otherwise be identical to the two vessels, currently under construction.
The vessels are 130 m long and 28 m wide with a deck area of 2,000 sq.m, DP Class 3, 100 man accommodation and a maximum transit speed of 16 knots, considered important for global operations in order to minimize mobilisation time.
The total estimated project cost for the contract is $143 million, with an increment of approx $10-12 million for the larger crane.
The investment will be financed through an equity private placement of up to NOK 285 million in Cecon ASA through a book-building process, an issue of $13.75 million in equity to Davie Yards as part payment for the vessels, with the remaining financing to be secured through expected long-term bank debt.
Pareto Securities ASA has been retained as financial advisors in relation to the private placement.