Norway's Shearwater Geoservices, the world's top seismic ship company, has completed the refinancing of its long-term debt.
The Bergen-based company issued $300 million of five-year senior secured first lien notes and used the net proceeds to repay prior debt and took out a new $300 million five-year bank loan. . We also established a $50 million revolving credit and $50 million guarantee facility.
The financing was provided by DNB Bank, Sparebank 1 SR-Bank, Export Finance Norway and Sparebanken Møre. The estimated annual amortization was $50 million and the price was SOFR +4.10%. The issuance of senior secured bonds was significantly oversubscribed and priced at a fixed interest rate of 9.5%. The bond is expected to be listed on the Oslo Stock Exchange in the second half of 2024.
“As a global leader in the marine seismic exploration industry, Shearwater has established a strong foundation for growth and value creation in terms of capabilities, capabilities and financial position. For the benefit of our shareholders, We are positioned to generate significant free cash flow over the next few years, driven by substantial operating leverage as we control global swing capacity through a combination of limited capital investment requirements and low leverage. We are fully supported,” said Andreas Weding-Obert, Shearwater's Financial Director.
Shearwater, led by Irene Wage Basili, was founded in 2016 as a joint venture between GC Lieber Shipping and Rasmussengruppen. His other major shareholder in the company is SLB, formerly known as Schlumberger. The company recently acquired two seismic vessels from the country's owner and operator Volstad for approximately $82 million, adding to its already 20-vessel strong fleet.
