Ziton seals long-term vessel deals with Siemens Gamesa

Danish offshore wind specialist Ziton has struck strategic agreements with Siemens Gamesa, extending the current charter deal it has with the wind turbine maker and adding a new charter for another to-be-acquired jackup vessel.

The current charter of the 2011-built Wind Enterprise, with options until June 20, 2025, will be extended by four and a half years, keeping the vessel on hire until the end of 2029 at a higher dayrate. Siemens Gamesa will retain an option for early termination of the contract after January 1, 2027, against payment of a one-off compensation.

Furthermore, the two companies have agreed a time charter of a new vessel on terms similar to the extension agreement for the Wind Enterprise. Ziton has an agreement in place to purchase the sister vessel to Wind Enterprise, subject to securing financing. The jackup unit is currently operating in China, and the charter is expected to be initiated at the beginning of 2024. The deal is for around six years, with no options for early termination.

The total value of the remaining part of the extended time charter and the new six-year agreement for the sister vessel can amount up to around €373m ($409m), Ziton said, adding that the two vessels are expected to generate about 55% of its run rate revenue from mid-2025.

To support financing the purchase of the sister vessel, Ziton has mandated Pareto Securities to conduct a series of fixed-income meetings and, subject to market conditions, a bond issue in the amount of €275m may follow. The net proceeds are intended to be used to repay outstanding bonds of some €173m, to finance the purchase of the sister vessel and related capital expenditure in an aggregate amount of €93m, to repay drawn amounts under the RCF, and to finance other costs.