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 fleet.
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