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.