Cal Dive International, Inc. announced that it has completed project financing to fund its share of the cost to construct production facilities at the Marco Polo and Gunnison Deepwater fields.
Deepwater Gateway LLC
, a joint venture owned by El Paso Energy Partners, L.P. and Cal Dive, has secured a $155 million commitment to fund 70 percent of the estimated total cost of the Marco Polo tension leg platform (TLP). As a 50% owner of Deepwater Gateway, CDI will fund the first $33 million of construction cost, at which point the joint venture will draw upon the loan facility. Repayment, which will begin after delivery of the TLP, consists of Cal Dive paying 20 quarterly installments of $2.75 million and a balloon of $22.5 million due in 2008. The facility is secured solely by the TLP and is non-recourse to CDI except for the company's guarantee of the balloon payment. The interest rate during construction is LIBOR plus 1.75%; once the TLP is in production the rate will range from LIBOR plus 1.50% to 2.00%, depending upon certain leverage ratios of Deepwater Gateway. El Paso Energy Partners led placement of this facility with a nine bank consortium.
Earlier in the month Cal Dive completed
restructuring the existing $67.0 million project financing for its share of the construction cost of the Gunnison spar. In essence, the company converted the existing facility to a $35 million term loan payable in 11 quarterly installments of $1.75 million after delivery of the spar, with the remaining $15.75 million due in 2007. The facility bears interest at LIBOR plus 2.25% to 3.00% depending on certain CDI leverage ratios. Financial covenants, among other restrictions, relate to EBITDA leverage, minimum interest coverage and debt to total book capitalization. Amounts drawn on the facility ($22.8 million at June 30, 2002) and the related share of the asset will be reflected on CDI's balance sheet at September 30, 2002.