DryShips buys Nautilus Offshore Services
DryShips Inc. a Greece-based marine transportation services provider for drybulk cargoes, will acquire Nautilus Offshore Services Inc. for $87 million plus the assumption of approximately $33 million of net debt.
In a press release issued on Thursday, DryShips said that it has entered into an agreement to acquire approximately 98% of Nautilus OffShore Services Inc., through its affiliate, Ocean Rig UDW Inc.
Nautilus, through its subsidiaries, owns six Offshore Supply Vessels of which four are Oil Spill Recovery Vessels (OSRVs) and two are Platform Supply Vessels (PSVs). All the vessels are on time charter to Brazilian Petrobras until certain dates through 2017.
The vessels are managed by TMS Offshore Services Inc., controlled by the DryShips’ Chief Executive Officer, George Economou.
According to the press release, the purchase price will be partly financed by a new loan facility of $50 million provided to the company by an entity controlled by George Economou. DryShips said the loan would be secured by shares that the company holds in Ocean Rig UDW Inc. and by one Panamax drybulk carrier, and has a tenor of three years.
In addition, DryShips said, the lenders and the borrowers have certain conversion rights.
DryShip added that the transactions have been approved by the independent members of the Company’s Board of Directors.
Ziad Nakhleh, Chief Financial Officer of the Company, commented: “We are very pleased to have agreed to the acquisition of six modern Offshore Supply Vessels from clients of TMS OffShore with fixed rate employment that we expect will generate in excess of $20 million of EBITDA until the end of 2016. With the support of our founder and main shareholder we are diversifying the Company’s asset base and increasing the Company’s secured cash flow for the benefit of all stakeholders.”