Following a long development programme, BOURBON has become the leader in offshore marine services due to its significant investments in innovative vessels built in series, enabling greater operational and cost control for its clients.
In the very difficult market facing the offshore services sector, BOURBON is particularly resilient due to its operational performance and cost control but also due to the end of its investment programme which is enabling free cash flow generation.
However, the direction taken by its customers towards the energy transition that is underway is driving the company to seek to diversify its activities to support these new directions and open real growth prospects.
Therefore, BOURBON has decided to acquire the activities of the global leader in ethane transportation, with a market share greater than 50% in a market expected to have strong growth.
It comprises the following companies who are currently owned by their majority shareholder, JACCAR Holdings:
The final completion of the acquisition, which was authorised by the Board of Directors on March 28, taking into account the opinion of an ad hoc committee and the opinion of an independent expert, is subject to ratification by shareholders at the Annual General Meeting on May 26, 2016, during which related parties will vote their shares in a manner so as to not influence the decision.
The purchase price for these companies is US$320 million with a net debt as of December 31, 2015 of US$389, the financing of the vessels being transferred as part of the transaction.
BOURBON will benefit from a seller’s credit of US$100 million with no interest for a maximum period of three years. It is anticipated to have in place a US$220 million bridge loan for a maximum period of three years. In fact, Bourbon will proceed, once the transaction is completed, with the resale of 80% of the ownership of the vessels, which will then be retained on bareboat charter for a minimum period of ten years. The bridge loan signed at the time of the acquisition would then be reimbursed and the impact on Bourbon’s debt decreased significantly.
Following approval of the transaction at the end of the Annual General Meeting on May 26, 2016 at which time he will be at the end of his mandate, M. Jacques de Chateauvieux would be named Chairman and CEO of BOURBON.
The perspectives “BOURBON Beyond BOURBON” will be presented later today in Paris and will be available on BOURBON’S website on March 30, 2016 at the end of the day (www.bourbonoffshore.com).
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/29032016/bourbon-to-invest-in-offshore-services/