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Nordic American Tankers to create a new offshore company

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Staff writer ▼ | November 4, 2013
Nordic American Tankers will create a new offshore supply vessel company, Nordic American Offshore Ltd. (NAO) with NAT as Manager.
Nordic American TankersNordic American Tankers will create a new offshore supply vessel company, Nordic American Offshore Ltd. (NAO) with NAT as Manager.


Nordic American Tankers (NAT) 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 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 Herbjorn Hansson.


 

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