Further to announcements on May 3, July 1, August 18 and October 1, 2010, Sevan Marine ASA (“Sevan”) announces that on November 9, 2010, relevant subsidiaries of Sevan entered into the charter contract and the services agreement with E.ON Ruhrgas UK E&P Limited (“E.ON”) together with related documents (the “E.ON Charter”), in respect of the chartering and operation of FPSO Sevan Voyageur on the Huntington field (block 22/14b) in the UK sector of the North Sea.
Installation of the FPSO on the Huntington field is expected to take place in Q4 2011 with first oil targeted for Q1 2012. The E.ON Charter is for a fixed term of five years with extension options for E.ON, and an estimated contract value of USD 535 million for the fixed term.
On July 7, 2010, Sevan announced that it, on behalf of one of its subsidiaries, had received commitment from ING Bank to arrange and underwrite a USD 230 million Senior Secured Credit Facility for FPSO Sevan Voyageur. The fully documented loan agreement has been completed and signed.
The net proceeds of the refinancing will replace the existing 1st lien financing of USD 150 million and completes the funding of the installation of a gas compression plant and expansion of water injection capabilities on FPSO Sevan Voyageur to upgrade the unit for operation on the Huntington field.
In a bondholders meeting held on June 25, 2010, the bondholders in ISIN NO 001039164.2 (FRN Sevan Marine Senior Secured Callable Notes 2007/2012) (the “Bond Loan”) consented to certain changes in the Bond Loan conditions, including, inter alia, the increase from USD 150 million to USD 230 million of the higher ranking bank facility and an increase in the applicable interest margin, all as more particularly set it in the summons to such meeting dated June 17, 2010. The said amendments to the Bond Loan will become effective upon the first drawdown under the ING Facility. The Bond Loan agreement as amended will be posted on Sevan’s website.
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Source: SevanMarine, November 10, 2010;