HOUSTON - SEACOR Marine Holdings Inc . (NYSE: NYSE:SMHI), a global provider of marine and support transportation services with a market capitalization of $190 million, has announced securing a new senior secured term loan of up to $391 million. According to InvestingPro data, the company currently operates with a significant debt burden, with existing total debt of $305 million as of the latest quarter. The loan, provided by an affiliate of EnTrust Global, is part of a comprehensive financial strategy that includes the construction of two platform supply vessels (PSVs) at a cost of $41 million each and the sale of two anchor handling towing and supply (AHTS) vessels for $22.5 million.
The newly arranged 2024 SMFH Credit Facility aims to streamline the company's debt structure into a single credit facility set to mature in the fourth quarter of 2029. With a current ratio of 1.63, InvestingPro analysis indicates that while SEACOR Marine maintains sufficient liquid assets to meet short-term obligations, its overall financial health score remains fair. Get access to 8 more exclusive ProTips and detailed financial metrics with InvestingPro. This strategic financial move also addresses the refinancing of $203.7 million of principal indebtedness under multiple secured debt facilities and $125.0 million of unsecured indebtedness due in 2026, which includes $35.0 million in convertible debt. The loan's terms stipulate an initial quarterly repayment of $5.0 million starting in March 2025, followed by quarterly installments of $7.5 million for the refinanced indebtedness and 2.13% of the principal amount borrowed to fund the Shipbuilding Contracts.
The PSVs being constructed are described as high-specification vessels with environmentally efficient features, including integrated battery energy storage systems. They are expected to enhance SEACOR Marine's fleet and support the company's asset rotation strategy. The anticipated delivery schedule for the PSVs is in the fourth quarter of 2026 and the first quarter of 2027, respectively.
The proceeds from the loan will also facilitate the early redemption of $35.0 million of convertible debt, which is projected to reduce the potential dilution of the company's common stock by approximately 10%. The sale of the AHTS vessels, which is set to be completed by January 2025, will mark SEACOR Marine's exit from the AHTS asset class and contribute to funding the construction of the new PSVs.
John Gellert, SEACOR Marine's CEO, expressed satisfaction with the transactions, highlighting their strategic importance for the company's growth initiatives and financial flexibility. He extended gratitude to EnTrust Global for their ongoing support and to The Carlyle Group (NASDAQ:CG) for their partnership since 2015. The company's stock, currently trading at $6.87, has experienced a significant decline of nearly 48% over the past six months, with analysts anticipating continued challenges in profitability for the current year.
This article is based on a press release statement by SEACOR Marine Holdings Inc.
In other recent news, SEACOR Marine Holdings Inc. has announced the expansion of its Board of Directors, appointing Lisa P. Young as an independent member. This development, which increases the board from five to six members, sees Young bring a wealth of experience from her 36-year career, including a recent role as a Senior Global Client Service Partner at Ernst & Young. She also holds board positions at Valo Health, Inc. and Accelus Inc.
Andrew Morse, Chairman of SEACOR Marine, welcomed Young, recognizing her knowledge and leadership track record as significant for the company's future strategies. Young's appointment is seen as a significant step in the company's recent developments, and her expertise is expected to contribute to SEACOR Marine's operations that cater to offshore installations and emergency response services.
While these are recent developments, SEACOR Marine's forward-looking statements reflect management's expectations and projections, which are subject to various factors that could cause actual results to differ. For more extensive information, SEACOR Marine recommends consulting further disclosures in its SEC filings.
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