Jacques de Chateauvieux, owner of one of the world’s most advanced and largest OSV fleets, has admitted the dire state of the offshore market means drastic changes are needed. The Bourbon boss has decided to dilute his fleet structure, taking in gas carriers from other companies he controls, as a way to get more liquidity.
In a release today, Bourbon, acknowledging the “very difficult market facing the offshore services sector”, said it would take over a number of ethane transportation firms held by its parent, Jaccar Holdings.
Bourbon will take over 100% Greenship Gas, a Singaporean owned shipping trust, comprising directly or indirectly of a fleet of 17 vessels of which 13 vessels are currently in service as well as 100% of Evergas, an operator and contractor of gas transportation services. It will also take on 100% of Greenship Gas Manager, the manager of the Greenship Gas shipping trust as well as 80 % of JHW Engineering & Contracting, a gas design and engineering firm.
The $320m acquisition should go through at Bourbon’s AGM on May 26.
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. A $200m bridge loan signed at the time of the acquisition would then be reimbursed and the impact on Bourbon’s debt should decrease significantly.
