As previously announced, the term of the facility is 36 months with an optional redemption by J. Ray after 18 months, and it contains no financial covenants. The facility is secured with liens placed on certain J. Ray assets including its domestic accounts receivable and the DB26 vessel. The remaining terms and conditions are similar to those set forth in the indenture relating to J. Ray's senior, secured notes issued in 2003.
By completing this facility, J. Ray's unrestricted cash balance as of Aug. 25, 2004 is now approximately $140 million. This amount does not include the additional liquidity which may be made available to J. Ray through an intercompany accounts receivable sale and purchase facility with McDermott signed in April 2004, which has not been utilized to date.
J. Ray also announced today that it has completed the sale of the combination derrick and pipelay barge 17 (the "DB17") to its joint venture, Construcciones Maritimas Mexicanas ("CMM"). J. Ray has received a $13 million secured promissory note from CMM, comprising the DB17 sales price of $8.6 million and prior charter revenue. The term of the note is approximately 18 months.
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