SD Standard Drilling : S.D. Standard Drilling Plc. secures 15.6% ownership in six (6) mid-size Platform Supply Vessels, increasing its fleet of partly and/or fully owned vessels to 16 PSVs

S.D. Standard Drilling Plc. secures 15.6% ownership in six (6) mid-size Platform Supply Vessels, increasing its fleet of partly and/or fully owned vessels to 16 PSVs

25.01.2017 07:55

S.D. Standard Drilling Plc. (the 'Company') has secured 15.6% ownership in New World Supply Ltd. ('New World Supply'), a Cayman Island exempted company that, through its wholly owned subsidiaries, owns the following six (6) 2013 built 3300 CD Platform Supply Vessels ('PSV') ; World Diamond, World Peridot, World Pearl, World Emerald, World Opal and World Sapphire (jointly the 'Vessels'). The Vessels are mid-size PSVs, all built at Damen Shipyard Group in Galati (Romania) with 728m2 deck space, 3,300 DWT, and equipped with DP II capability. The Vessels were originally acquired en-bloc by New World Supply from World Wide Supply AS ('WWS'), on a 'where is / as is basis', for a total consideration of USD 27.5 million. The initial capitalization of New World Supply exceeded this amount by USD 5 million in order to ensure that New World Supply is properly funded for its operation going forward, hence the initial all equity financing of New World Supply is USD 32.5 million. The purchase price for 15.6% ownership in New World Supply is USD 5.1 million. The opportunity to capitalize New World Supply was offered pro-rata to all bondholders of WWS. The Company currently owns USD 19.746 million (face- value) of WWS bonds. These bonds were acquired for USD 3.410 million. As bondholder in WWS, the Company had rights to subscribe for shares in New World Supply and has been allocated 15.6% of the shares in New World Supply. The net investment for the New World Supply shares to be booked in Q1 2017 is estimated at USD 3.3 million after subtracting the initial proceeds that the Company will receive from its bondholding in WWS. Furthermore, the Company may receive up to USD 750,000 in additional proceeds from its bondholding in WWS, however, the Company estimates this figure to be lower due to expenses related to winding down WWS. Following the completion of investments in New World Supply and acquisition of vessels from Volstad Shipping AS (as announced on 19 January 2017), the Company owns 100% of three (3) large-size PSVs and has invested in additional 13 mid-size PSVs, bringing the total fleet of partly and/or fully owned vessels up to 16 PSVs. The investment in the Vessels represents another milestone for the Company in achieving its ambition to invest in a larger fleet of vessels - all purchased at low values. 'We are very pleased with the investment in the Vessels. The Vessels are favorably priced at approx. USD 4.6 million per unit, representing a discount of approx. 86% to the actual newbuild price of approx. USD 34 million and a discount of approx. 76% to the 25- year current newbuild parity of a four year old vessel with an implied value of approx. USD 18.9 million.' says Martin Nes, Chairman of the Company. The investment in New World Supply will be financed through the Company's cash holding, the share contributions from the subsequent offers and the Company's USD 10 million revolving credit facility recently entered into with Saga Tankers ASA. In the press release on 19 January 2017 regarding the acquisition of three (3) large PSVs for an en-bloc price of USD 40 million, the Company announced that it had a cash holding of approx. NOK 330 million (equivalent to approx. USD 39 million) prior to this acquisition. The subsequent offers related to the private placements that has been completed, is expected to increase the Company's cash holding with up to NOK 14.3 million (approx. USD 1.7 million). New World Supply is a newly incorporated entity with no historical financial information as of now. No agreements have been entered into that are for the benefit of members of the management or board of directors of the Company in connection with the acquisition of the Vessels. This stock exchange notice is published in accordance with the requirements for detailed stock exchange announcements pursuant to section 3.4 of the Continuing Obligations for companies listed on Oslo Axess. For further information please contact: General Manager, Evangelia Panagide at [phone], or ; Chairman of the Board, Martin Nes at [phone]