Hondo River News

Trico Marine Services, Inc. (Pink Sheets: TRMAQ) announced that it has reached an agreement with the company's major constituents concerning the process of selling Trico's remaining towing and supply vessels and any related operating assets, in accordance with previous public statements that the company is exiting the towing and supply business. The United States Bankruptcy Court for the District of Delaware recently issued an order approving the agreed upon sale process. The company noted that today's announcement excludes vessels owned by entities not part of the company's bankruptcy proceedings, including Trico's North Sea Towing and Supply vessels.

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.

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.

TRICO Marine Operators, Inc., recently took delivery of 232 ft. Spirit River, constructed by Eastern Shipbuilding Group, of Panama City, Fla. Measuring 232 x 48 x 16 ft., Spirit River is equipped to offer a variety of services, and is distinguished by its shallow draft, which allows the vessel to operate out of all the Gulf of Mexico ports. Spirit River and soon-to-be-delivered sister ship, Hondo River were both built to the highest standards of USCG, and classed by ABS as Maltese Cross A1 E AMS. Each vessel has also been SOLAS certified for international voyages. Power is supplied by a pair of EMD 16-645E7 main engines, rated at 2,875 hp each, and coupled to Lufkin RHS 2500 HG gears with a 3.6:1 ratio.