Nordic American Offshore Ltd. Announces Completion of Vessel Acquisition and Sale of Common Shares under Equity Line of Credit
April 10 2019 - 4:54PM
Hamilton, Bermuda-April 10, 2019-Nordic American
Offshore Ltd. (the "Company" or "NAO") announced today that it has
completed the previously announced acquisition of thirteen vessels
from Scorpio Offshore Holdings Inc. for 8,126,219 common shares at
$2.7774/ share.
In a separate transaction, the Company has sold
3,240,418 common shares under its Equity Line of Credit to two
affiliated entities which are accredited investors for $2.7774/
share. Clarksons Platou Securities acted as advisor in this
transaction.
Emanuele A. Lauro, Chairman and Chief Executive
Officer, commented "With the completion of this acquisition and the
first drawdown under our Equity Line, NAO has achieved critical
short-term milestones of reducing our financial leverage and
increasing our liquidity. We will now turn to our immediate
operational goals which include the employment of our entire North
Sea fleet within the month of May.
Our PSVs and North Sea operations will remain our
primary focus. Our Q1 results will portray a number of
contracts which reflect weaker market conditions.
However, our spot vessels are experiencing dramatically improved
utilization and rates, in some cases exceeding $20,000/ day.
We do anticipate current conditions persisting, even improving,
into the summer months.
Our Anchor Handlers and Fast Crew Boats are
serving global customers in the West African market. We are
experiencing increased enquiry for our spot vessels which portends
a broader improvement in offshore fundamentals beyond any single
region. We look forward to providing more details during our Q1
Earnings Call next month."
About Nordic American Offshore
Ltd.
NAO is a Bermuda-based company listed on the New York Stock
Exchange engaged in the offshore industry. It owns and
operates a fleet of 10 modern harsh environment platform supply
vessels, 11 crew boats and 2 anchor handling vessels. Additional
information about the Company is available on the Company's website
at www.nao.bm.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Matters discussed in this press
release may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe
harbor protections for forward-looking statements in order to
encourage companies to provide prospective information about
their business. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which
are other than statements of historical facts.
The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation.
The words "believe," "anticipate," "intend," "estimate,"
"forecast," "project," "plan," "potential," "may," "should,"
"expect," "pending" and similar expressions identify
forward-looking statements.
The forward-looking statements in
this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions, including
without limitation, our management's examination of historical
operating trends, data contained in our records and other data
available from third parties. Although we believe that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or
projections. We undertake no obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Important factors that, in our
view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of
world economies and currencies, general market conditions,
including fluctuations in charter rates and vessel values, changes
in demand in the PSV market, as a result of changes in the general
market conditions of the oil and natural gas industry which
influence charter hire rates and vessel values, demand in platform
supply vessels, our operating expenses, including bunker prices,
dry docking and insurance costs, governmental rules and
regulations or actions taken by regulatory authorities as well as
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events,
the availability of financing and refinancing, vessel breakdowns
and instances of off-hire and other important factors described
from time to time in the reports filed by the Company with the
Securities and Exchange Commission.
Contact Information:
Nordic American Offshore Ltd.
+377 9798 5717 (Monaco)
+1 646 432 3315 (New York)
Web-site: www.nao.bm
Press release (PDF)
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nordic American Offshore Ltd via
Globenewswire
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