American Shipping (AMSC) has agreed to acquire an offshore construction vessel, named Normand Maximus, from Maximus for around $157m.
AMSC will also sign a long-term bareboat agreement with offshore services provider Solstad Offshore’s subsidiary.
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The company will fund the deal using 70% debt, with the remainder being provided through both cash on hand and new equity.
AMSC has already secured indicative debt financing terms and support from crucial stakeholders to fund the deal.
AMSC CEO Pål Lothe Magnussen said: “We look forward to working together with Solstad as a long-term tonnage provider going forward. We have for some time been looking for the right growth opportunity and we are very satisfied with concluding on this transaction.”
“The Transaction is accretive on all key financial metrics and is projected to produce more than 20% annual return on equity with strong running dividend yield.
“The offshore services market is in recovery and is currently experiencing increased activity and positive outlook. We believe the timing of the Transaction is favourable and the risk/reward attractive.”
Constructed in 2016, Normand Maximus is claimed to be one of the most modern heavy-duty subsea construction vessels in the world.
Featuring a 2,600m working deck, the ship can accommodate 180 people. It also includes a carousel for flexible products with a capacity of approximately 4,000t.
The vessel will mainly be used for laying flexible pipes and umbilicals as well as installing subsea equipment.
Plans are also underway to use the vessel for the installation of power cables for the offshore wind industry.
