The Company has agreed to sell its interest in a construction contract for an AHTS being built in Brazil and a contract with Petrobras to charter the vessel once completed. Nordea Securities acted as a consultant for the transaction. The Company anticipates recovering substantially all of its costs related to the project. The purchase agreement is subject to customary closing conditions including final approval from Petrobras.
As part of this liquidity enhancing plan, the Company also announced the refinancing of its outstanding NOK term loan. The new three-year NOK 150 million term loan facility contains identical covenants to the existing NOK revolving credit facility. Proceeds from the loan were used to paydown an outstanding NOK 40 million term loan and repay amounts outstanding under the Company's NOK 760 million revolving credit facility and provide additional borrowing capacity.
Additional information about the Company's plans to improve its liquidity are discussed in the Company's Form 10-Q for the quarter ended March 31, 2003, previously filed with the Securities and Exchange Commission.
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