Torch Offshore Announces New $35 Million Bank Facility
Torch Offshore, Inc. has entered into a new $35 million bank facility with Regions Bank. The bank facility consists of a $25 million asset-based 5-year revolving credit facility and a $10 million working capital facility. The bank facility will be used primarily to provide near-term financing for the conversion of the Company's world-class deepwater construction vessel, the Midnight Express.
Lyle G. Stockstill, Torch Offshore, Inc. Chairman and Chief Executive Officer, commented, "We are excited about our new bank facility which represents an integral part of Torch's long-term expansion plan into the deepwater construction market. We have received bids for the conversion of the Midnight Express and are in the early stages of evaluating and selecting a shipyard for the conversion process. We remain on schedule to award the contract for the conversion in August and to commence construction shortly thereafter. This new facility allows us to continue with these plans while we implement Torch's long-term financing plan."
Established in 1978, Torch Offshore, Inc. is involved in offshore pipeline installation and subsea construction for the oil and natural gas industry. Torch Offshore is expanding beyond its established shallow water niche market in order to serve the industry's worldwide growing needs in the deep waters.