BOURBON has announced the acquisition of the activities of a global leader in ethane transportation, with a market share greater than 50% in a market expected to have strong growth.
”In the very difficult market facing the offshore services sector, BOURBON is particularly resilient due to its operational performance and cost control but also due to the end of its investment program which is enabling free cash flow generation. However, the direction taken by its customers towards the energy transition that is underway is driving BOURBON to seek the diversification of its activities to support these new directions and open real growth prospects. Therefore, BOURBON has decided to acquire the activities of the global leader in ethane transportation, with a market share greater than 50% in a market expected to have strong growth.” BOURBON said in a statement.
The final completion of the acquisition, which was authorized by the Board of Directors on March 28, taking into account the opinion of an ad hoc committee and the opinion of an independent expert, is subject to ratification by shareholders at the Annual General Meeting on May 26, 2016, during which related parties will vote their shares in a manner so as to not influence the decision.
The purchase price for these companies is $320 million with a net debt as of December 31, 2015 of $389, the financing of the vessels being transferred as part of the transaction.
BOURBON will benefit from a seller’s credit of $100 million with no interest for a maximum period of three years. It is anticipated to have in place a $220 million bridge loan for a maximum period of three years. In fact, BOURBON will proceed, once the transaction is completed, with the resale of 80% of the ownership of the vessels, which will then be retained on bareboat charter for a minimum period of ten years. The bridge loan signed at the time of the acquisition would then be reimbursed and the impact on BOURBON’s debt decreased significantly.
Source & Image Credit: BOURBON
