Trico Marine Services received a commitment from the U.S. Maritime Administration
(MarAd) to provide a Title XI financing relating to the construction of two 230-ft. deepwater supply vessels. The first vessel, Spirit River, was delivered in December 1998 and began a long-term charter contract, while the second vessel, Hondo River
, is expected to be delivered in the second quarter of 1999.
The MarAd guarantee is for an aggregate of approximately $18.8 million. The debt obligations are to be amortized over a period of 15 years, beginning six months from the date of closing. Proceeds will be used to prepay amounts outstanding under the company's revolving credit facility. Bank One Capital Markets, Inc. has committed to purchase the debt obligations.