Tuesday, August 29, 2000
Farstad declares option
for second PSV
Norway’s Farstad Supply AS, has declared its option
at Simek AS for delivery of a platform supply vessel in October 2001.
The vessel is of the same design as the lengthened
UT 745 currently under construction at the yard for delivery in May
2001.
Title XI
financing for Cal Dive MSV
Cal Dive International, Inc. reports that it has
completed a low-interest, long-term financing for the construction of its
technologically advanced multi-service vessel, the Q4000. The U.S. government
is guaranteeing the $138.5 million financing under Title XI of the Merchant
Marine Act, as administered by the Maritime Administration (MARAD).
The Q4000, under construction at the AMFELS yard
in Brownsville, Texas, is a sixth generation semi-submersible that the
Cal Dive believes will revolutionize the economics of deepwater completion
and construction operations.
At closing, the company made an initial draw of $40
million, with additional funding to occur at the end of 2000 and upon delivery
of the vessel. Proceeds from the initial draw were used to retire all borrowings
on the company's revolving line of credit and fund current construction
calls of the Q4000. Govco Incorporated, a unit of Citigroup, handled the
sale of the notes which are backed by the full faith and credit of the
United States government.
Jim Nelson, Chief Financial Officer of Cal Dive,
stated, "This attractive financing vehicle offers the advantages of a relatively
low interest rate, initially 6.9%, and mortgage style amortization over
a 25-year period. It's also important that we have four years to lock in
the fixed rate for the permanent financing, and that a portion of the principal
repayment is secured solely by the vessel. Since Cal Dive had already funded
$67 million of the vessel's estimated $150 million construction cost through
internally generated cash flow, the $25 million net balance from this first
draw is available for general corporate purposes."
Spa resort
firm plans cruise ships
Health spa resort operator Canyon
Ranch,is forming a new division that will design and operate a line of
cruise ships "dedicated to health, healing and adventure." Each ship "will
be a health resort from stem to stern." The ships will be operated
as companion properties to the existing Canyon Ranch health resorts in
Tucson, Arizona, and Lenox, Massachusetts.
Agreements have been signed with Societa Esercizio
Cantieri shipyard in Viareggio, Italy, for construction of the first two
vessels, Quest I and Quest II. S.E.C. was the contractor for the
construction of Silver Sea's five-star vessels, Silver Cloud and Silver
Wind. Preliminary plans call for the ships to have a worldwide itinerary,
with inaugural launch scheduled for 2002.
The 25,000 grt Quest I and Quest II will each
carry only 320 guests in 180 cabins. Each ship will feature large all-outside
suites, 90% of which will have private verandas. All suites will be lavishly
appointed, complete with entertainment centers, luxurious private baths
and ample closet space.
A staff of more than 300 on each ship will include
120 spa and health professionals.
The ships will each carry a floating lagoon for swimming,
sunning and water sports -- including jet skiing, canoeing, kayaking and
scuba diving. Each ship will also carry a 12-person underwater observation
vehicle for unique views of the ocean below.
Headquarters for Canyon Ranch at Sea will be in Tucson,
Arizona. Operational offices will be located in South Florida and Athens,
Greece. The executive team of the Canyon Ranch at Sea will be announced
in the near future.
Crescent Real Estate Equities Company (NYSE: CEI),
one of the countries largest real estate trusts, (REIT), has an interest
in the Canyon Ranch at Sea venture and as owner of the sites on which the
two original Canyon Ranch Health Resorts are located in Tucson, Arizona
and Lenox, Massachusetts. Crescent is a partner in all new Canyon Ranch
opportunities.
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