Seacor Marine agrees to pay off $117.3 million credit facility

By Marisa Wong

Los Angeles, June 11 – Seacor Marine Holdings Inc. announced that indirect subsidiary Falcon Global USA LLC entered into a second amendment and conditional payoff agreement to its credit facility dated Feb. 8, 2018 and administered by JPMorgan Chase Bank, NA.

As of June 10, there was $117.3 million of principal outstanding under the credit facility.

Under the terms of the payoff agreement, the $117.3 million of principal currently outstanding will be deemed satisfied in full upon the payment to the lenders of a total of $50 million comprised of (i) $25 million to be paid at the signing of the payoff agreement and (ii) $25 million to be paid on or before Dec. 15, 2021.

According to a news release, hull and machinery insurance proceeds received by the lenders for the Seacor Power incident will be set off against and satisfy the requirement to make the second $25 million payment. These insurance proceeds are expected to be received prior to Dec. 15, 2021 in the amount of $25 million and are to be paid to the lenders under the terms of the Falcon credit facility.

Upon final payment, the credit facility will terminate, and the mortgages and security arrangements will be released with respect to the nine liftboats securing the obligations under the facility.

Seacor has provided a limited guaranty with respect to Falcon’s obligations under the payoff agreement.

After giving effect to the payoff and based on Seacor’s total debt reported as of March 31, Seacor’s total debt will be reduced by $112.5 million, resulting in total debt of $354.2 million, a 24.1% reduction from the $466.7 million of total debt reported as of March 31. Seacor’s net debt will decrease by $87.5 million on the same basis upon final payment.

“This transaction significantly de-levers our balance sheet and is an accretive use of our liquidity as we reset the capital structure of our liftboat fleet,” Seacor chief executive officer John Gellert commented in the release.

“It also further advances our previously stated strategy to maintain full financial flexibility and our commitment to U.S.-flagged liftboat,” Gellert said.

“We remain focused on our response to the Seacor Power incident and expect to complete the recovery efforts in July.”

Seacor is a Houston-based provider of marine and support transportation services to offshore energy facilities.

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