GGS Inks MOA with Pride for 3 Tender Assist Rigs
GGS entered into a Memorandum of Agreement with Pride Foramer SAS Aug. 9, 2007 to acquire three tender assist rigs. The transaction was subject to novation of drilling contracts with international oil companies.
The completion of the deal will be as follows: The tender assist rig Alligator to be acquired Jan. 30, 2008. The drilling contracts on Barracuda and Al Baraka are now finally novated and will be transferred to GGS in February 2008.
Simultaneously GGS has finalised the finance structure linked to the transaction, USD 170 million in three different facilities combined with three international banks and Eksportfinans. The main facility of USD 125 million is a 5 year loan with a maturity profile according to the cashflow profile of the tender rig contracts, and with an interest rate margin of 2,1% above LIBOR. The owner and the borrower of the tender assist rigs will be Global Tender Barges Pte Ltd in Singapore, a 90% owed subsidiary of Global Tender Barges AS / GGS ASA. Abbot Investment limited will owe 10% of Global Tender Barges Ltd. GGS/Abbot Investment Limited will capitalize Global Tender Barges Pte Ltd with USD 90 million in equity, and a USD 15 million in a cash collateral guarantee against the yard stays of Al Baraka and Barracuda.
Global Tender Barges Ltd is in negotiations on a new long term contract for Alligator, 4-5 years at attractive market rates. The existing contract on Alligator expires by end 2008.