GulfMark Offshore subsidiary gets $150 million multicurrency revolver

By Angela McDaniels

Tacoma, Wash., Sept. 26 - GulfMark Offshore, Inc. subsidiary GulfMark Americas, Inc. closed on a new $150 million multicurrency revolving credit facility due Sept. 21, 2017 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

GulfMark Offshore is guarantor. The facility is secured by some GulfMark Americas vessels.

The initial interest rate is Libor plus 225 basis points. The margin can range from 175 bps to 300 bps and is based on the company's leverage ratio. The commitment fee is 40 bps.

Royal Bank of Scotland plc is the agent. Together with Wells Fargo Bank, NA and JPMorgan Chase Bank, NA, it acted as arranger.

Proceeds may be used for general corporate and working capital purposes, but they may not be used to repay or prepay the company's 6 3/8% senior notes due 2014 or in support of any program or issuance of commercial paper.

The facility has four financial covenants:

• The company's leverage is capped at 3.00 times. This cap steps down to 2.75 times beginning with the quarter ending March 31, 2015 and to 2.50 times beginning with the quarter ending March 31, 2016;

• The company must maintain a consolidated interest coverage ratio of at least 4.00 times;

• The company must maintain a ratio of equity to total assets of at least 0.35 times; and

• The collateral-to-debt ratio must be at least 1.75 times at the end of each quarter.

In connection with the new facility, the company terminated its $25 million secured reducing revolving loan facility, Gulf Shore N.S. Ltd.'s $60 million secured reducing revolving loan facility, GulfMark Rederi AS' $30 million secured reducing revolving loan facility and Gulf Marine Far East Pte. Ltd.'s $60 million secured reducing revolving loan facility. There were no borrowings outstanding under the terminated facilities.

Houston-based GulfMark moves equipment, people and supplies to offshore facilities and repositions drilling structures.

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