Mermaid Maritime enters $65 million loan agreement

Offshore vessel provider Mermaid Maritime has entered into a $65 million loan deal with the Export-Import Bank of Thailand (Exim) to refinance a previous loan related to two of its vessels.

Mermaid Endurer; Photo by: Tam Scotland; Source: Flickr – under the CC BY 2.0 license

Mermaid Maritime said that its subsidiary Mermaid Subsea Services Thailand (MSST) entered into the agreement for the loan on June 14.

According to the company, the objective of the loan is to extend the financing of the two company’s vessels, the Mermaid Endurer and Mermaid Asiana, for a further period of five years with the same lender.

“The loan shall be applied to settle the indebtedness owed to Exim under a previous credit facility agreement for the two vessels and replacing that arrangement with the latest loan instead,” Mermaid said.

Mermaid added that the loan has a condition where a mandatory prepayment event may occur if Thoresen Thai Agencies holds directly or indirectly less than 33 percent of the total issued share capital in the company.

Also, should the prepayment occur, the aggregate level of the facility, assuming it is drawn in full, will be $65 million excluding interest. As of June 14, this condition has not been breached.

As for the two vessels in question, the Mermaid Endurer is currently moored in the Persian Gulf. The vessel is under a $17 million contract with a company from a GCC country, signed last year.

The vessel was scheduled to start work for the company in May 2019 while the end of the deal is expected some 180 days later in October 2019.

Offshore Energy Today last time reported on the second vessel – the Mermaid Asiana – in September 2017 when Mermaid Maritime landed a $96 million contract extension in the Middle East. AIS data also places the vessel in the Persian Gulf.

Offshore Energy Today Staff

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