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Nordic American Offshore To Refinance Debt, Buy 13 Vessels From Scorpio Offshore For $22.6M

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Nordic American Offshore To Refinance Debt, Buy 13 Vessels From Scorpio Offshore For $22.6M

Nordic American Offshore Ltd (NYSE: NAO) announced Monday an agreement with lenders under the company's $150-million revolving credit facility for an extension of waivers until Jan. 31, 2020.

What Happened

Nordic said its lenders have committed to a $132.9-million term loan facility with a Dec. 6, 2023 maturity date to refinance the credit facility, which has an outstanding balance of $132.9 million.

As part of the above agreements, Nordic said it will acquire 13 vessels from Scorpio Offshore Holdings Inc. for consideration in common shares worth approximately $22.6 million in aggregate.

Why It's Important

"Today marks a new beginning for Nordic American Offshore, CEO Emanuele Lauro said in a statement.

“With the shared commitment of our lenders and major shareholers, 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."

What's Next

Nordic American Offshore shares were rallying by more than 29% to $3.24 at the time of publication Monday. 

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Posted-In: Emanuele Lauro Scorpio Offshore Holdings shippingM&A News Financing Best of Benzinga

 

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