Davie Yards Goes Ahead on Ocean Hotels

Wednesday, December 16, 2009

Davie Yards (TSX:DAV) received confirmation that its client Ocean Hotels has finalized a $100m loan agreement with Export Development Canada (EDC) for the financing of two Multipurpose Accommodation Vessels contracted at Davie.

“Now that our client has secured its financing with EDC, we will be able to restart construction of the Ocean Hotels vessels, which has been suspended for a long period” said Steinar Kulen, President and Chief Executive Officer at Davie, and he continued; “Those newbuilding projects are important to maintain a good level of activity at the yard, and this is good news for our employees and their families. I am glad that they will have a much better Christmas than last year when we were forced to lay off people temporary”.

One year ago, on December 17, 2008, the Canadian government authorized EDC to make available up to $358m in financing for Davie. From this facility, Davie’s client, Cecon, already has entered into a $200m senior secured loan for financing their three Offshore Construction Vessels on contract with Davie. Now Davie’s other client, Ocean Hotels has entered into a senior secured loan for $100m. In July this year, Davie entered into a loan agreement with EDC of up to $40m as pre-funding of the $100m loan to Ocean Hotels to secure design, engineering and supplies to the project. This loan is repaid in full with the first payment from Ocean Hotels received.

Delivery of Ocean Hotels vessels is planned for 2011. Davie total backlog of five vessels remains solid at $530m.

(www.davie.ca)
 

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Damen Outfitting First of Nine Bahamas Patrol Boats

The first of nine Damen Stan Patrol 3007s ordered by the Royal Bahamas Defense Force has arrived at Damen Shipyards Gorinchem in the Netherlands for outfitting.

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

New Chinese Shipyard Launches First Ship

The new shipyard facility of Honghua Offshore Oil & Gas Equipment Company in Jiangsu, China, has launched its first ship, an IMT982 Platform Supply Vessel. The vessel,

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1652 sec (6 req/sec)