DOF Deepwater AS ("DOF Deepwater"), which is jointly controlled by Akastor and
DOF ASA ("DOF") and which has been part of Akastor's legacy portfolio since the
demerger from Aker Solutions in 2014, has today entered into a term sheet with
its lenders on a restructuring of its debt that secures continued operations up
to second half of 2023. The restructuring of DOF Deepwater involves i.a. the
following principles:
i. Akastor ownership: DOF shall transfer all of its shares in DOF Deepwater to
Akastor, who will own all shares in the company and assume full operational
responsibility over DOF Deepwater and its five vessels (Skandi Emerald, Skandi
Peregrino, Skandi Saigon, Skandi Pacific and Skandi Atlantic);
ii. Debt restructuring: 50% of the current debt in DOF Deepwater shall be
converted to equity and the remaining 50% (i.e. about NOK 520 million) shall
remain on existing terms, including a parent company guarantee from Akastor ASA,
albeit with certain adjustments that include i.a. no fixed instalments except an
upfront repayment of NOK 20 million, Maturity Date being 3 years after closing,
i.e. around Q3/Q4 2023;
iii. Profit split: At time of divestment of the vessels, which is planned to
take place on or around Maturity Date, the sales proceeds after transaction
costs shall be shared 50/50 between the lenders and DOF Deepwater.
Akastor CEO, Karl Erik Kjelstad says:
"We are pleased to reach this agreement with the DOF Deepwater lenders, as it
will give the company a predictable and viable financial structure for the
coming three years. DOF Deepwater operates in a market which remains
challenging, but with this financial structure and the relative modern and
versatile fleet, the company should be well positioned to remain as a market
player and thereby secure revenue in a more normalised market in the future."
Closing is i.a. subject to final agreements being entered into and is expected
to take place in Q3 2020.
As from closing, DOF Deepwater will be consolidated into Akastor Group as a
subsidiary. At latest prior to closing, DOF Deepwater will change its name to
DDW Offshore AS.
For further information, please contact:
Øyvind Paaske
Chief Financial Officer
Mobile: +47 917 59 705
E-mail: oyvind.paaske@akastor.com
Akastor is a Norway-based oil-services investment company with a portfolio of
industrial holdings and other investments. The company has a flexible mandate
for active ownership and long-term value creation.
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.