Thailand-based offshore drilling services company Mermaid Maritime Public Company said that its subsidiary Mermaid Subsea Services Thailand (MSST) has entered into a $65 million loan deal with the Export-Import Bank of Thailand (Exim).
As per the press release from the provider of subsea and drilling services to the offshore oil and gas industries, the objective of the loan is to extend the financing of the two company’s vessels, the Mermaid Endurer and Mermaid Asiana, for a further period of five years with the same lender.
“The loan shall be applied to settle the indebtedness owed to Exim under a previous credit facility agreement for the two vessels and replacing that arrangement with the latest loan instead,” Mermaid said.
The loan has a condition where a mandatory prepayment event may occur if Thoresen Thai Agencies holds directly or indirectly less than 33 percent of the total issued share capital in the company, said the release.
“Should the event of default occur, the aggregate level of the facilities (assuming the facilities are drawn in full) and existing outstanding borrowings of MSST that may be affected is approximately USD 65 million, excluding interest,” it added.