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SEACOR Marine Announces Debt Payoff Agreement

SEACOR Marine Holdings Inc., a leading provider of marine and support transportation services to offshore energy facilities worldwide, announced that Falcon Global USA LLC (“FGUSA”), an indirect subsidiary of SEACOR Marine, entered into a second amendment and conditional payoff agreement (the “Conditional Payoff Agreement”) in respect of the credit facility of FGUSA, as borrower, and certain of its subsidiaries, dated as of February 8, 2018 administered by JPMorgan Chase Bank, N.A. (as amended, the “FGUSA Credit Facility”). As of June 10, 2021, there was $117.3 million of principal outstanding under the FGUSA Credit Facility.

Under the terms of the Conditional Payoff Agreement, the $117.3 million of principal currently outstanding will be deemed satisfied in full upon the payment to the lenders of a total of $50.0 million comprised of (i) $25.0 million to be paid at the signing of the Conditional Payoff Agreement, and (ii) $25.0 million to be paid on or before December 15, 2021. Hull and machinery insurance proceeds received by the lenders in respect of the SEACOR Power incident will be set off against and satisfy the requirement to make the second $25.0 million payment. Such insurance proceeds are expected to be received prior to December 15, 2021 in the amount of $25.0 million and are to be paid to the lenders pursuant to the terms of the FGUSA Credit Facility. Upon final payment, the FGUSA Credit Facility will terminate and the mortgages and security arrangements will be released with respect to the nine liftboats securing the obligations thereunder. SEACOR Marine has provided a limited guaranty with respect to the obligations of FGUSA under the Conditional Payoff Agreement.

After giving effect to the payoff of the FGUSA Credit Facility and based on SEACOR Marine’s total debt reported as of March 31, 2021, SEACOR Marine’s total debt will be reduced by $112.5 million, resulting in total debt of $354.2 million, a 24.1% reduction from the $466.7 million of total debt reported as of March 31, 2021. SEACOR Marine’s net debt will decrease by $87.5 million on the same basis upon final payment.

John Gellert, SEACOR Marine’s Chief Executive Officer, commented:

“This transaction significantly de-levers our balance sheet and is an accretive use of our liquidity as we reset the capital structure of our liftboat fleet. It also further advances our previously stated strategy to maintain full financial flexibility and our commitment to U.S.-flagged liftboats.

“We remain focused on our response to the SEACOR Power incident and expect to complete the recovery efforts in July. We continue to grieve for our crew members, partners and the loved ones of those who were lost.”
Source: SEACOR Marine Holdings Inc.

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