SEACOR Marine Holdings Inc. Enters into $391 Million Credit Agreement and Shipbuilding Contracts

SEACOR Marine Holdings Inc. (NYSE: SMHI) recently disclosed a significant development in its financial operations through an 8-K filing with the Securities and Exchange Commission. On November 27, 2024, SEACOR Marine Holdings Inc., together with SEACOR Marine Foreign Holdings Inc. and certain wholly-owned subsidiaries, finalized a credit agreement for a senior secured term loan amounting to $391.0 million. This agreement, known as the 2024 SMFH Credit Facility, involved an affiliate of EnTrust Global as the lender, Kroll Agency Services Limited as the facility agent, and Kroll Trustee Services Limited as the security trustee.

The credit facility consists of two parts: Tranche A for up to $350.0 million and Tranche B for up to $41.0 million. The funds from Tranche A will facilitate refinancing of existing principal indebtedness and payment of accrued and unpaid interest and fees, among other corporate purposes. Tranche B funds will be earmarked for specific uses, including payments towards the construction of two platform supply vessels (PSVs) to be delivered between the fourth quarter of 2026 and the first quarter of 2027.

The credit agreement outlines that the 2024 SMFH Credit Facility matures on the fifth anniversary of the initial funding and entails quarterly payments towards the outstanding principal amount. The fixed interest rate stands at 10.30% per annum, with the ability to prepay the loan in specified increments.

Additionally, the Company issued a guaranty concerning the obligations of SEACOR Marine Foreign Holdings Inc. under the 2024 SMFH Credit Agreement. This guaranty comprises financial covenants related to Cash and Cash Equivalents, Equity Ratio, and Debt-to-Capitalization Ratio, among others.

In response to these developments, SEACOR Marine Holdings Inc. posted an investor presentation on its website on December 2, 2024, and issued a press release announcing the execution of the 2024 SMFH Credit Facility. The Company’s Chief Executive Officer, John Gellert, emphasized the strategic importance of these transactions, consolidating existing debts and providing funding for growth initiatives.

The endeavor further signifies SEACOR Marine’s commitment to optimizing its financial structure, supporting its vessel construction program, and enhancing its fleet operations as it looks ahead to future growth opportunities. For further details, readers are encouraged to refer to the complete 8-K filing from the Company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SEACOR Marine’s 8K filing here.

About SEACOR Marine

SEACOR Marine Holdings Inc provides marine and support transportation services to offshore oil, natural gas, and windfarm facilities worldwide. Its offshore support and specialty vessels deliver cargo and personnel to offshore installations, including offshore wind farms; handle anchors and mooring equipment for offshore rigs and platforms; assist offshore operations for production and storage facilities; provide construction, well work-over, and offshore wind farm installation and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance, inspection, and repair, as well as offer accommodations for technicians and specialists, safety support, and emergency response services.