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Financing Newbuild Program #5 – Hornbeck Taps Equity Markets
On November 7th, Hornbeck Offshore Services Inc. announced its plans to build 16 U.S. flagged 300 class DP2 new generation offshore supply vessels, with options to build a further 16 for its upstream business. Exclusive of construction period interest, the aggregate cost of the first 16 vessels is estimated to be $720 million with deliveries scheduled during 2013 and 2014, which coincides with the delivery of approximately 145 incremental floaters and high specification jack-up rigs. The order was split equally between VT Halter Marine and Eastern Shipbuilding Group. This newbuilding program is the company’s eighth since its inception in 1997 and the fifth involving state of the art technologically advanced new generation OSVs.
Constructed with the increased demands of its deepwater and ultra-deepwater customers in mind, the new design offers double the deadweight capacity and more than doubles the liquid mud capacity of its predecessor 240 class, while maintaining an overall size that maximizes the efficiency from an operating cost perspective. While the vessels will be built in the U.S. which qualifies them for the coastwise trade in the Gulf of Mexico (“GoM”) under the Jones Act, the vessels will be deployed in the company’s core geographic markets of the GoM, Brazil and Mexico.
Fulford-Smith Out; Andi Case In
As the Russian battle over valuations continues and Clarkson has to set aside even more money to fund their legal battle, the question on everyone mind is can their ace tanker broker Andi Case transform himself into a CEO overnight.
Ask any CEO of a public company and they will confide that the job is vastly different and more demanding than any line manager or brokers role. To take on the reins in the midst of a fight is only tougher.
CMA’s Irish Feis
CMA’s 2008 Shipping Conference got off to a brilliant start on St. Patrick’s Day. It was not only bigger, 2,000 attendees by latest count, but if possible was one of the best ever in terms of content. Understanding that everyone is Irish on St. Patrick’s Day, the organizers brought Ireland to the conference much to the chagrin of the local pubs, Tiernan’s and Tigin. Bob Kunkel of Seacoast Electronics was serving Guinness and Harps at the Seacoast booth and then brought in the pipes and drums from the Rockland County Emerald Society for entertainment.
It is grossly unfair to gloss over the program, which is dedicated to every part of shipping, but it would also be impossible to describe it all. So instead we will exhibit our prejudice and focus on the market sessions.
The Official Guide To Marine Finance Providers
Shipping Index
