London: Norway’s Ocean Yield has secured a $220m revolving credit facility with a bank consortium to finance its multipurpose construction vessel Aker Wayfarer.
The vessel is employed until 2027 on a bareboat charter AKOFS Wayfarer, which has sub-chartered the vessel on a five-year contract to Petrobras. This charter to due to commence in the second half of 2016 and includes a five-year extension option.
Before the start of the contract next year, the vessel will undergo a $90m conversion to a deepwater subsea equipment support vessel. Ocean Yield says this will allow it to install and retrieve subsea trees and modules, including subsea structures and manifolds.
The new credit facility will in addition to refinance the vessel’s existing $107m outstanding loan, and will provide 100% financing of the $90m conversion project. The remaining $23m will be used for general corporate purposes. The credit facility is due to mature in 2021.
“We are pleased to announce the signing of this new credit facility, which provides Ocean Yield with attractive financing for the Aker Wayfarer and will, together with the recently announced bond issue of NOK1bn [$126m], further strengthen our ability to continue the growth of the company,” Lars Solbakken, Ocean Yield’s CEO, said in a statement today.