The acquisition is carried out in combination with a leaseback agreement to a subsidiary of McDermott International, Inc. ("MDR") on an 11-year bareboat charter. MDR has options to acquire the vessel periodically over the charter term. Offshore Merchant Partners has been integral in structuring the transaction.
Completed in 2014 at Lloyds Werft Bremerhaven, the Amazon is a high capacity subsea vessel equipped with 4,600 square meters of deck space complete with two 400MT cranes and accommodation for up to 200. MDR plans to upgrade the vessel with a state-of-the-art J-lay system outfitted with the latest vessel technology to expand its ultradeepwater capabilities. The Amazon is expected to become a key enabling asset for MDR as a part of its overall fleet strategy to extend technical capabilities of its global fleet and grow its subsea, umbilicals, risers and flowlines (SURF) market position. MDR is a leading international provider of integrated engineering, procurement, construction and installation (EPCI) services for offshore and subsea field development. The company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for the production and transportation of hydrocarbons. MDR is listed on the New York Stock Exchange (NYSE:MDR) and is headquartered in Houston, Texas.
The transaction shows OMP’s position as a leading financing provider to the offshore oil and gas industry delivering tailored long term financing solutions to strong counterparties. This includes both structured credit and sale and leaseback transactions.
Following this transaction, Offshore Merchant Partners Asset Yield L.P. has invested about 40% of its total commitments of USD 381 million, financing multiple modern offshore assets through leases, preferred equity and junior debt instruments.
Commenting on the transaction, the Chairman of Offshore Merchant Partners and Senior Partner at HitecVision, Alf C. Thorkildsen said "I am pleased with the fact that OMP’s has structured a bespoke long term financial solution for MDR, and that the team is building the portfolio further with high-quality counterparties."
Adding to Mr. Thorkildsen, CEO Carl Petter Finne said "We are pleased to announce the leaseback agreement with MDR as it allows us to further diversify our portfolio. The transaction fits very well with our strategy to finance modern high-end offshore assets for market leaders."
About McDermott International, Inc.
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Its customer base includes national and major energy companies. Operating in approximately 20 countries across the world, its locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. McDermott is renowned for its extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. MDR has served the energy industry since 1923. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit McDermott’s website at www.mcdermott.com
About Northern Shipping
Stamford-based Northern Shipping employs 16 investment professionals with broad expertise in maritime finance. Northern Shipping represents a stable source of capital, providing structuring flexibility and superior execution. For more information, please visit www.northernshippingfunds.com
About Offshore Merchant Partners
Offshore Merchant Partners is an independent specialty finance company providing financing solutions to the global oil & gas related offshore asset markets. The company offers bespoke long-term financing solutions primarily through sale-leaseback structures and junior debt instruments.
Offshore Merchant Partners is headquartered in Oslo and presently employs fifteen professionals with significant sector-specific expertise and relationships with leading companies and institutions globally. Offshore Merchant Partners is structured as a portfolio company of HitecVision VI L.P.
Contact Carl Petter Finne – CEO of Offshore Merchant Partners
Tlf: +47 97 04 69 27