Swedish Floatel to Finance Floatel Victory Construction Through Bond Issue

Sweden-based Floatel International Ltd, established in 2006 to satisfy a market demand for a new generation of offshore floatels, is contemplating the issuance of up to a USD 200 million equivalent bond issue in the Norwegian bond market.

The proceeds from the bond issue will be used to finance the Company’s new build program for accommodation vessels at Keppel FELS Limited, Singapore.

Floatel Victory is an accommodation and construction support vessel designed to meet the latest UK HSE regulatory requirements for operating in the harshest environmental conditions in the world. It is built in accordance with ABS rules and regulations. The facility will have air-conditioned living quarters for 500 persons, 100 single bed cabins and 200 two men cabins. Each cabin will be fully outfitted with en-suite bathroom and telephone/ IT/TV connection facilities.

Floatel International has further agreed an indicative term sheet for a new bank loan of USD 200 million regarding its new build vessel Floatel Victory.

The Company is increasing its fleet by building a third vessel, the harsh environment semi submersible Floatel Victory, which is currently under construction and is due for delivery in early 2014. The Company’s fourth vessel is scheduled for delivery in July 2014.

“The new financing arrangements will further strengthen Floatel International as a leading provider of new building accommodation vessels to the offshore oil and gas industry. “We continue to build quality in the Company’s fleet of next generation semi submersible vessels and operational team to meet the high standards required by our clients”, comments Floatel International CEO Peter Jacobsson

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Offshore Energy Today Staff, May 7, 2012; Image: Floatel International Ltd