November 10, 2008
Polarcus gets deferred payment deal for three newbuilds
Polarcus has received commitment for a deferred payment arrangement with Drydocks World Dubai LLC in relation to the last three of the six advanced Ulstein-designed X-bowed seismic vessels it is building at the Drydocks World Dubai shipyard in the UAE.
Under the terms of this new arrangement, which covers the new build vessels NB 70, NB 71 and NB 72, the payment instalments due under the original shipbuilding contracts will be deferred from the scheduled milestone payment dates to the contractual delivery dates of the vessels.
The total value of the deferred instalments amounts to $99 million. An interest rate of LIBOR + 3 percent will apply on each deferred instalment from the time and on the terms such instalment would have been paid under the shipbuilding contracts to the time of actual payment.
"We are very grateful for the trust and belief that Drydocks World Dubai continues to show in Polarcus, both as a key contract party and as a major shareholder through Drydocks World LLC," said Rolf Ronningen, CEO Polarcus. "The deferred payment arrangement contributes positively to our short-term financial position and provides us with much greater flexibility in timing to secure the remaining project funding."
As of July 14, 2008, Drydocks World LLC was the largest shareholder in Polarcus (which is listed on the Oslo OTC market) with a 36.8% stake/
Dubai-based Polarcus has shipbuilding contracts in place with Drydocks World Dubai LLC for six advanced seismic vessels focused on the more favorable high-end towed streamer seismic market including both the Arctic and wide azimuth markets. Polarcus has since inception successfully raised about $540 million in new equity and debt financing including sale leaseback and vendor financing. The first three vessels, NB 66, NB 67 and NB 69, are currently under construction at the Drydocks World Dubai shipyard in the UAE.