September 25 - Fairstar Heavy Transport has signed a loan agreement with Fortis Bank Nederland for a USD15 million, four year facility secured by a second mortgage over the company's two vessels Fjord and Fjell.
The floating rate facility is priced at three month LIBOR plus a margin of 4%. The proceeds will be used to redeem the Company's outstanding NOK 124 million Bond. The Fortis loan can be drawn down at any time until March 1, 2010.
Fairstar has presented its Bondholders with an option to extend the repayment date of the NOK Bond until March 1, 2010. Norsk Tillitsmann, acting as Trustee for the Bondholders, is currently discussing this option with the Bondholders. A meeting with the Bondholders has been set for Friday October 2, 2009.
Mark de Haas, CFO of Fairstar commented: "The capital markets remain extremely challenging. Fairstar is now methodically reducing our long-term liabilities. However, maintaining a conservative level of liquidity is the most prudent way for us to manage our business and our balance sheet. The Fortis facility is another vote of confidence in our ability to maintain a sustainable leadership position in the off-shore heavy transport industry"
In addition the company has advised that it has signed a contract with Saipem to transport the jack-up rig Perro Negro 3 from India to Dubai.
Fairstar's semi-submersible transport vessel Fjell is now underway from Singapore. The transport from the loading location to the discharge site is expected to require about 14 days including time for the actual float-on and float-off of the rig. Total contract value is approximately EUR 1.2 million.
Philip Adkins, CEO of Fairstar stated: "We are delighted to have been selected by Saipem to transport this valuable cargo. Fairstar has the opportunity to demonstrate the performance of Fjell, and our team on board, to a major energy company. The contract creates important revenue for Fairstar now and is a significant step towards our goal of establishing Fairstar as a leader in the harsh and demanding world of offshore heavy transport."