Siem Offshore (SIOFF) agreed to sell Siem Daya 1 to Daya for US$120 million.
In addition, SIOFF is entitled to a 60/40 profit share in SIOFFs favor based on the profit Daya makes on the vessel limited to an additional $10 million.
A deposit of $10 million is to be paid within 30 June 2015. The canceling date is 31 August 2015.
The purchase price of $30 million for the vessel will be financed by a sellers credit from SIOFF in the form of a convertible bond to Daya Materials Berhad with four years duration and a coupon of 5%, and a conversion price of 15 Malaysian sen ($.04) per share.
The transaction is subject to Daya shareholder approval as well as approvals from Malaysian Stock Exchange and Securities Commission with respect to the convertible bond.
The parties have also agreed to reduce the charter rate for Siem Daya 2 to $55,000/d with a day rate of $45,000/d being applicable in the event the vessel is in lay-up and a catch up rate which would secure a day rate of up to $60,000/d provided the vessel operates profitably for Daya. The charter party for Siem Daya 2 has further been extended with one year.
The agreement allows Daya to operate profitably based on its current contract portfolio and helps securing a solid foundation for Daya’s future business as well as a better foundation for SIOFF’s contract backlog.
Image from Siem Offshore
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