Prosafe (“Prosafe” or the “Company”) and COSCO Shipping (Qidong) Offshore Co. Ltd (“COSCO”) today signed an agreement (“Agreement”) allowing for flexible delivery and long-term financing of Safe Eurus, Safe Nova and Safe Vega (each a “Unit” and collectively the “Units”).
The Agreement with COSCO includes the following main terms (details set out in Attachment 1):
Outstanding conditions precedent and final approvals for the Agreement are expected to be confirmed within August.
The Agreement provides a very attractive solution for both Prosafe and COSCO. Prosafe achieves commercial flexibility to take the Units to market as opportunities materialise in the years ahead, whilst COSCO secures a delivery gateway for its key semi-submersible accommodation new builds via a leading accommodation vessel operator.
Prosafe has also been in recent discussions with its lenders in respect of its loan facilities to enable it to fully utilise the strategic optionality and flexibility provided by the new Agreement, preserve values in the near term and potentially increase longer term cash flow for the benefit of all stakeholders. The amendments of the loan facilities to support the strategic transformation of the Company and to significantly improve its financial position in the years ahead include (details set out in Attachment 2):
At this stage in the process Prosafe has support to the amendments from approx. 94 per cent of the lenders, subject to final credit approvals and customary conditions precedents, and expect finalization within August.
In a comment, Mr. Jesper Kragh Andresen, CEO of Prosafe says; “The agreement with COSCO combined with the flexibility to possibly scrap up to another three legacy vessels will significantly change our fleet profile. Prosafe will be able to attain a modern and competitive fleet with future earnings potential for the long term. The agreement with our lenders includes improved financing terms and implies an extended financial runway as well as the ability to finance the staged delivery of the 3 vessels from existing cash and cash-flow from operations. The combination of the agreement with COSCO and the agreement with our lenders is expected to create value for all stakeholders”.
Further details can be downloaded:
Prosafe will host a presentation and webcast at Felix Conference Center in Oslo on 6 August at 10.00 hrs CEST, and a teleconference the same day at 15.00 hrs CEST.
To access the webcast:
Please visit www.prosafe.com and click on the “Webcast" link at the bottom of the front page. It will be possible to ask questions via e-mail during the presentation.
To participate to the teleconference:
To access the conference call, please dial in 5-10 minutes prior to the start using one of the numbers provided below:
Participants will need to quote the following confirmation code when dialling into the conference: 6811367
There will be a Q&A session at the end of the teleconference. Information on how to ask questions will be given at the beginning of the Q&A session. In order to view the presentation while listening to the conference, please download the presentation material from www.prosafe.com
Stavanger, 3 August 2018
For further information, please contact:
Jesper K. Andresen, CEO
Phone: +47 907 65 155
Stig Harry Christiansen, Deputy CEO and CFO
Phone: +47 478 07 813
Cecilie Helland Ouff, Senior Manager Corporate Finance and Treasury
Phone: +47 991 09 467