Arrow Seismic Accepts $125M Secured Facility
Arrow Seismic ASA, a 54 % owned subsidiary of GC Rieber Shipping ASA, has accepted a firm offer for a US$125 million secured facility to be entered into between Arrow Seismic and DnB NOR Bank ASA as mandated lead arranger, underwriter and bookrunner.
The purpose of the facility is to refinance the vessel "CGG Laurentian" and part-finance the purchases and planned conversions of the three 2D/source vessels. The facility will be secured with first priority mortgages in the vessels and a parent company guarantee provided by Arrow Seismic ASA.
The facility has a margin of 0.70% - 0.80 % over USD LIBOR, pending on charter period of the vessels, and will have a term of about seven years.
Further, Arrow Seismic ASA has with value 16 April
2007 issued a NOK 275 million commercial paper as
a bridge to equity financing. The commercial paper
is senior unsecured, carries a coupon of 7.00% and
has final maturity date 16 October 2007. The
commercial paper was arranged by DnB NOR Bank ASA.
Arrow Seismic is also considering utilizing the
bond market as a long term funding source in
addition to the secured long term mortgage
financing facilities in place for the seismic
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