Norway-based Dolphin Geophysical and Bergen-based GC Rieber Shipping entered into multi million-dollar deals that include an early redelivery and improved vessel terms of an overall restructuring agreement to improve Dolphin’s competitiveness in today’s challenging market.
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The Polar Duke. Image from Dolphin. |
GC Rieber agreed to take early redelivery of the Polar Duke 3D seismic vessel in a move that will save the company US$16 million in reduced hire payments. The company will also grant Dolphin a $5 million rolling credit for nine months.
In addition, charters for both the Polar Duchess and Polar Marquis have been extended by 18 months.
Dolphin has also managed to improve terms on two loans and secure a $15 million short-term bank facility to increase accounts receivable.
In a bank agreement, Dolphin secured a nine-month repayment holiday on the two term loans, which represent $5.5 million per quarter in improved liquidity for the next three quarters. The financial covenants are being reviewed including possible adjustments for 3Q 2015. Remaining balances on the two term loans are $47 million and $15 million per 3Q 2015, Dolphin said.
A rolling credit of $8.5 million was also granted to Dolphin by two ship owners in a nine-month period.
"I am pleased to be able to announce that this significant milestone is achieved, with all elements contributing to improved liquidity. The support shown by major stakeholders demonstrated throughout Dolphin's growth has always been critical to Dolphin's success; their continued support is now equally important in ensuring Dolphin's resilience to weathering the current stormy market conditions," Atle Jacobsen, Dolphin CEO said.
“We are satisfied we've been able to reach an agreement together with other major stakeholders that supports Dolphin Geophysical in improving their competitiveness in the challenging market ahead,”GC Riever CEO Irene Waage Basili said.
Also today, Dolphin was awarded a two-three month 3D data acquisition and processing contract from an undisclosed client to commence in 4Q 2015.
In May, GC Rieber took delivery of the $90 million Polar Empress under a five-year charter contract with Dolphin. GC Rieber also owns the Polar Duke, Polar Duchess and Polar Marquis, all three of which are chartered to Dolphin Geophysical. Contracts expire in May 2016, April 2017, November 2017 and May 2020, respectively.
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