Nordic American Tankers (NYSE:NAT) is to create a new offshore supply vessel company, Nordic American Offshore Ltd. (NAO). Preliminary option agreement for the 7th vessel entered into.
(Thomson Reuters ONE) -
Hamilton, Bermuda, November 2, 2013
The project as described in the NAT press release below, announced yesterday,
November 1st, has been expanded to seven PSV vessels, including an option for
delivery of the 7th vessel during the spring of 2015. The price for the
delivered 6 vessels is about NOK 270 million each - about USD 45 million per
unit. The price for the 7th vessel, if the option is exercised, is the same as
for the delivered six vessels. An objective is further expansion for NAO that
will be the owner of the vessels.
------------------------------------------
Nordic American Tankers (NYSE:NAT) to create a new offshore supply vessel
company, Nordic American Offshore Ltd. (NAO) with NAT as Manager. NAT will be
operated as before.
Hamilton, Bermuda, November 1, 2013
Nordic American Tankers (NAT) announced today that it is coordinating the
establishment of Nordic American Offshore Ltd. (NAO), a new company that plans
to purchase, on certain conditions, six platform supply vessels (PSVs). These
ships were built in 2012 and 2013 by the Ulstein Group in Norway. The strategy
of NAO is expected to be essentially the same as for NAT with dividend as an
important element.
Nordic American Offshore is expected to undertake a private equity placement to
finance at least 80% of the acquisition price of these vessels. 20% or less of
the cost is expected to be financed via debt.
NAT and Ulstein Shipping AS will participate in the private placement with
15%/20% and 5% respectively. The NAT investment is planned to be about $50
million.
The establishment of Nordic American Offshore and the NAT investment in the new
company do not in any way constitute a departure from NAT's commitment to a
homogenous Suezmax tanker fleet. There will be no change as to how NAT operates
its business, including how it determines quarterly dividends from its fleet of
Suezmax tankers. Nordic American Offshore will seek listing on the New York
Stock Exchange as soon as possible.
Because of the investment in NAO and as Manager of Nordic American Offshore, the
objective for Nordic American Tankers is to pay a higher dividend to NAT
shareholders than otherwise would be the case. The new company will have
existing contracts in place for several of these vessels and spot charters for
the remainder. As with NAT, NAO can be expected to operate on a cash break-even
basis that is highly competitive within the industry.
"The establishment of Nordic American Offshore with a capital contribution from
NAT is a move with the objective to increase the dividend payments to
shareholders of Nordic American Tankers,'' said NAT Chairman and CEO Herbjørn
Hansson. "We have significant expertise in the offshore sector, and we think
this new offshore business venture will help maximize total return to NAT
shareholders. We wish to extract cost synergies and to leverage the NAT customer
relationship in the energy business. Our presence in the US capital market will
also help us to achieve our objectives for this new project."
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business. Forward-
looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The words
"believe," "anticipate," "intend," "estimate," "forecast," "project," "plan,"
"potential," "will," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections. We undertake no obligation to
update any forward-looking statement, whether as a result of new information,
future events or otherwise.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies and currencies, general market conditions, including
fluctuations in charter rates and vessel values, changes in demand in the tanker
market, as a result of changes in OPEC's petroleum production levels and world
wide oil consumption and storage, changes in our operating expenses, including
bunker prices, drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international political
conditions, potential disruption of shipping routes due to accidents or
political events, vessels breakdowns and instances of off-hires and other
important factors described from time to time in the reports filed by the
Company with the Securities and Exchange Commission, including the prospectus
and related prospectus supplement, our Annual Report on Form 20-F, and our
reports on Form 6-K.
Contacts:
Scandic American Shipping Ltd
Manager for:
Nordic American Tankers Limited
P.O Box 56, 3201 Sandefjord, Norway
Tel: + 47 33 42 73 00 E-mail: nat(at)scandicamerican.com
Jacob Ellefsen,
Manager, Investor Relations and Research, Monaco
Nordic American Tankers Limited
Tel: + 377 93 25 89 07 or + 33 678 631 959
Rolf Amundsen, Advisor, Norway
Nordic American Tankers Limited
Tel: +1 800 601 9079 or + 47 908 26 906
Turid M. Sørensen, EVP & CFO, Norway
Nordic American Tankers Limited
Tel: +47 33 42 73 00 or +47 90 57 29 27
Gary J. Wolfe
Seward & Kissel LLP, New York, USA
Tel: +1 212 574 1223
Press Release PDF:
http://hugin.info/201/R/1740120/584187.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nordic American Tankers Limited via Thomson Reuters ONE
[HUG#1740120]
Unternehmensinformation / Kurzprofil:
Datum: 02.11.2013 - 18:19 Uhr
Sprache: Deutsch
News-ID 311985
Anzahl Zeichen: 8054
contact information:
Town:
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Kategorie:
Business News
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