Otto Marine announced that subsidiary Surf Subsea Inc. has obtained a US$26 million ($35 million) term loan agreement from a US investment company whose identity was not revealed.
Otto Marine has a 19.2% stake in Surf Subsea Inc. through wholly-owned subsidiary, Surf Subsea Pte Ltd (SSPL).
The US$26 million term loan facility is to be utilised for the purposes of refinancing of the US-flagged Surf Challenger vessel and for general working capital.
Among other requirements to secure the facility, the lender or mortgagee will get first priority over Surf Subsea Inc. in claims made against the vessel. Otto Marine has also provided a corporate guarantee that controlling shareholder Yaw Chee Siew holds no less than 51% equity interest in Otto Marine at all times.
“The breach of this condition will cause a default in the loan agreement and consequently, the guarantee, which may trigger cross-defaults under the group’s other credit facilities and significantly affect the company’s operations,” says Otto Marine.
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Otto Marine has a 19.2% stake in Surf Subsea Inc. through wholly-owned subsidiary, Surf Subsea Pte Ltd (SSPL).
The US$26 million term loan facility is to be utilised for the purposes of refinancing of the US-flagged Surf Challenger vessel and for general working capital.
Among other requirements to secure the facility, the lender or mortgagee will get first priority over Surf Subsea Inc. in claims made against the vessel. Otto Marine has also provided a corporate guarantee that controlling shareholder Yaw Chee Siew holds no less than 51% equity interest in Otto Marine at all times.
“The breach of this condition will cause a default in the loan agreement and consequently, the guarantee, which may trigger cross-defaults under the group’s other credit facilities and significantly affect the company’s operations,” says Otto Marine.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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