| Master Marine ASA secures further operations |
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Master Marine ASA secures further operations Master Marine has finalized the refinancing of the company. Nordic Capital has committed to contribute EUR 270 million in equity and loans. The agreement secures the completion of Master Marine's two innovative Jack Up Construction vessels, currently under construction in Indonesia. Master Marine will have a new majority shareholder with industrial experience and financial strength, which the company will benefit from going forward, says Per Johansson, CEO of Master Marine ASA. Future operation and completion of the projects is now secured through the agreement with Nordic Ocean Limited, a subsidiary of Nordic Capital Fund VII. The recapitalization consists of EUR 130 million of new equity and EUR 140 million of senior secured loans. Nordic Ocean Limited will also acquire the outstanding High Yield Bond at an aggregate price of EUR 30 million which can be converted into equity at a later stage. The outstanding Convertible Bond will also be converted into new shares. After completion of the transactions and full conversion of the High Yield Bond, Nordic Capital Fund VII will have an 89 percent ownership of Master Marine through Nordic Ocean Limited. Master Marine will next year deliver a state of the art, safe jack-up accommodation unit to ConocoPhillips on Ekofisk. The accommodation unit is constructed to withstand a 10.000 year wave and will be the first jack-up accommodation unit to be a "safe haven" for offshore employees. It will be the largest jack-up accommodation unit in the North Sea with 447 single cabins. Master Marine is currently also building a jack-up vessel for installation of offshore platforms and wind turbines. Its first project will be the installation of 88 turbines on English sector in the North Sea for StatoilHydro / Statkraft. These projects are so far running as planned with minimal cost overrun. Master Marine is now set to continue its operations and ensures by this that more than 600 industrial jobs in Norway are secured, says Johansson. Our organization remains intact and we are looking forward to further developing the Company. In the longer term Master Marine will secure bank financing for the company. For this purpose GIEK is an important contributor. Through an excellent dialogue with the Ministry of Trade and Industry and GIEK, Master Marine has secured a GIEK guarantee of EUR 64 million. The ministry has displayed great understanding for the industry and the current challenges companies are facing due to "the global financial crisis". Master Marine would like to emphasize that ConocoPhillips, StatoilHydro/Statkraft, Drydocks World, Lamprell, Flexmodul, Nymotogether with subcontractors have shown great understanding and cooperation throughout this period. This demonstrates confidence in Master Marine and its concept, which has been crucial during the last months and an important contribution to be able to secure further operation. The Management and Board of Master Marine are very grateful for the loyalty and support displayed by employees and consultants during this period. The market response is very positive, and Master Marine has a number of offers pending. In addition we are currently evaluating several potential next projects both in the emerging offshore wind market and also in the oil & gas sector. This together with clear signs of solid market potential for our units worldwide, makes us very optimistic for the future development and growth of Master Marine, says Per Johansson
For further information, please contact: Oslo 5th October 2009 |
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