Tidewater announces the acquisition of 37 platform supply vessels from Solstad Offshore
Tidewater Inc. today announced a definitive agreement to purchase 37 of Solstad Offshore ASA’s platform supply vessels (“PSV”) for $577 million, according to the company's release.
The addition of 37 PSVs makes Tidewater the largest owner and operator of high-specification PSVs, which is the OSV vessel class that has demonstrated the highest utilization through all market cycles.
Enhances Tidewater’s position as the leading global OSV operator with a world-class fleet: Tidewater’s total fleet of 228 vessels is among the youngest in the world, and features a modern fleet of 199 PSVs and AHTS with an average age of 11.3 years, 65% of which are high-specification vessels.
The combined fleet will include 14 battery hybrid and 2 LNG power capable vessels and will be able to leverage Tidewater’s emissions reduction and fuel optimization technology, further demonstrating Tidewater’s commitment to sustainability
The acquired vessels have total backlog of approximately $620 million (including contract option periods) and significant potential cash flow generation upside as maturing contracts roll onto higher market day rates.
Tidewater intends to fund the Transaction through a combination of new debt and cash on hand. The company has received commitments from a group of financial institutions, led by the company’s existing lender DNB Bank ASA, for a three-year senior secured credit facility of up to $325 million, and expects to raise new debt prior to closing of the transaction. Closing of the transaction is subject to customary regulatory approvals and includes a financing contingency. The closing of such financing is subject to agreement on satisfactory documentation and the negotiation and satisfaction of customary conditions precedent.
The transaction was unanimously approved by Tidewater’s Board of Directors and is expected to close in the second quarter of 2023.
