The Restructuring, which commenced in 2011 and has been implemented under a step plan through 2011 and 2012, has now been effected according to plan as the final element was completed with the delivery today of FPSO “Voyageur Spirit” (the “Unit”) to Voyageur LLC, a subsidiary of Teekay Corp.
Title to the Unit, together with all of the shares in Sevan Production UK Limited (“SPUKL”), was transferred by Sevan 300 Pte Ltd to Voyageur LLC today at 19:40 hrs CET, in connection with which Sevan and relevant subsidiaries were released from all obligations and liabilities under (i) the USD 230 mill. loan facility pertaining to the Unit pursuant to finance documents with the bank syndicate led by ING Bank N.V as agent, (ii) the bridge loan provided to Sevan by Voyageur LLC for completion of the upgrade of the Unit, and (ii) the chartering and service agreements (with ancillary documents) entered into with the Huntington licence holders, represented by E.ON E&P UK Limited (“E.ON”). SPUKL, under the ownership of Voyageur LLC, will make the Unit available to the E.ON consortium for use on the Huntington field now that production has commenced.
“The delivery of the Unit to Teekay marks the successful completion of a demanding restructuring process, and the start of a new era for Sevan with focus on technology, engineering and project development within the FPSO segment, without ownership to and operation of operating assets. The production start at Huntington is also an important milestone and illustrates the flexibility for redeployment offered by the Sevan Technology,” said Carl Lieungh, CEO of Sevan Marine.