Mermaid Maritime Public Company Limited has announced that its wholly owned subsidiary, Mermaid Subsea Services (Thailand) Ltd., has on 14 June 2019 entered into a facility agreement with the Export-Import Bank of Thailand to borrow from the lender a loan of up to the aggregate principal amount of USD 65,000,000.
The objective of the facilities is to extend the financing of MSST’s two vessels, namely ‘Mermaid Endurer’ and ‘Mermaid Asiana’, for a further period of five years with the same lender. The loan shall be applied to settle the indebtedness due to the lender under a previous credit facilities agreement in respect to the two said vessels and replacing that arrangement with the facilities instead.
For the purposes of disclosure under Rule 704(31) of the Listing Manual of the Singapore Exchange Securities Trading Limited, the facilities contain a condition where a mandatory prepayment event may occur if: Thoresen Thai Agencies Public Company Limited hold directly and/or indirectly less than 33% of the total issued share capital of the company. Should the Event of Default occur, the aggregate level of the facilities (assuming the facilities are drawn in full) and existing outstanding borrowings of MSST that may be affected is approximately USD 65 million, excluding interest.As at the date of this announcement, the condition described above has not been breached.