SD Standard Drilling : S.D. Standard Drilling Plc. to acquire three (3) large Norwegian built Platform Supply Vessels ("PSV") on a wholly owned basis, increasing its fleet to 10 Platform Supply Vessels

S.D. Standard Drilling Plc. to acquire three (3) large Norwegian built Platform Supply Vessels ('PSV') on a wholly owned basis, increasing its fleet to 10 Platform Supply Vessels

19.01.2017 15:02

S.D. Standard Drilling Plc. to acquire three (3) large Norwegian built Platform Supply Vessels ('PSV') on a wholly owned basis, increasing its fleet to 10 Platform Supply Vessels. Through wholly owned subsidiaries, S.D. Standard Drilling Plc. (the 'Company') has agreed to acquire the three (3) ST-216L CD PSVs Volstad Viking, Volstad Supplier and Volstad Princess (jointly the 'Vessels') from Volstad Shipping AS. The Vessels are large PSVs, all built at Aker Brattvaag, Norway in 2007-2008, with 1,060m2 deck space and equipped with ice class (ICE- 1B) capabilities. The Vessels are to be acquired for a total en-bloc consideration of USD 40 million. Following the acquisition, the Company will control a fleet of 10 Norwegian built PSVs which implies a further strengthening of the Company's investment in the PSV market. The acquisition of the Vessels on a wholly owned basis represents a milestone for the Company in achieving its ambition to control a larger fleet of vessels - all purchased at low values. The Company sees additional opportunities in the market that will further enable the Company to continue to grow its asset base. 'We are very pleased with the acquisition of the Vessels. The Vessels grow our asset base and fleet significantly and are favorably priced at USD 13.3m per unit, representing a discount of 67% to USD 40.6m actual newbuild price and a discount of 47% to the 25- year current newbuild parity of a 9 year old vessel with an implied value of USD 25m. Furthermore, the Vessels are all large and well-recognised PSVs which distinguish themselves with their tremendous power, speed and good station keeping capabilities, especially in harsh weather conditions. The Vessels have an impeccable operating track record and enable the Company to enter the Norwegian market. With their ice class capabilities the Vessels are also likely to be deployed for operations in harsh/sub-Arctic regions' says Martin Nes, Chairman of the Company. Fletcher Shipping ('Fletcher') will act as technical and commercial manager for the Vessels. Fletcher already has technical and commercial management for the Company's equity investments in PSV Opportunity I-III DIS. The acquisition of the Vessels is expected to be completed, subject to inspection, in February 2017. The acquisition will be financed through the Company's cash holding, the share contributions from the subsequent offers and (to the extent necessary) a credit facility. The Company currently has a cash holding of approximately NOK 330 million (equivalent to USD 39 million). The subsequent offers related to the private placements that has been completed, will increase the Company's cash holding with up to NOK 16.9 million (~USD 2 million). In connection with the acquisition of the Vessels, the Company will enter into a six (6) months revolving credit facility (RCF) at market terms with Saga Tankers ASA totaling USD 10 million in order to secure the Company's available liquidity reserves. No agreements have been entered into that are for the benefit of members of the management or board of directors of the Company in connection with the acquisition of the Vessels. This stock exchange notice is published in accordance with the requirements for detailed stock exchange announcements pursuant to section 3.4 of the Continuing Obligations for companies listed on Oslo Axess. For further information please contact: General Manager, Evangelia Panagide at [phone], or ; Chairman of the Board, Martin Nes at [phone]