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Canada: CECON ASA Inks Completion Contracts for Davie Vessels

Posted by | 03.02.2013 | Maritime News

Canada: CECON ASA Inks Completion Contracts for Davie Vessels
Cecon signed Completion Contracts for the three Vessels under construction at Chantier Davie Canada Inc.
Hull 717 with a cost of CAD 69.5 mill and delivery autumn 2013. Hull 718 at a cost of CAD 75 mill and hull 719 at a cost of CAD 100 mill.
The entering into these contracts fulfills the condition of the Agreement with Export Development Canada (EDC) in acquiring the USD 200 million financing received by Cecon ASA in February 2009. This agreement covers the loan principal of USD 200.000.000… and all accrued unpaid interest up until execution of the agreement (approx USD 51 mill as of Jan. 31 2013). The agreed consideration to be paid to EDC from Cecon ASA is USD 27,000,000.
As published on 2nd January 2013, Cecon ASA and York Capital Management Global Advisors LLC have signed a committed term sheet for a multi-tranche senior secured bond issue of up to USD 107.5 million for the purposes of purchasing the existing Export Development Bank of Canada Loan, providing incremental working capital to Cecon, and funding the completion of construction of Hull 717 at Chantier Davie Canada. In addition to construction financing for Hull 717, York has made construction financing of up to USD 175 million available for Cecon for the completion of Hulls 718 and 719, respectively.
The bond agreement together with other agreements and documentation in this respect will be completed in the next few days.

Cecon ASA, February 1, 2013; Image: Wikimedia

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