BW Offshore Limited (BWO) has today closed an agreement with a nominee of the financial leasing firm, ICBC Financial Leasing Co., Ltd. (ICBCL), whereby such nominee becomes an equity partner in BW Catcher Limited, which owns the BW Catcher FPSO currently under a lease contract with Premier Oil.
The equity investment in the BW Catcher FPSO is the first transaction under the cooperation agreement signed between BWO and ICBCL in April this year.
BW Catcher Limited has issued preference shares with a preferential dividend right to ICBCL, for an aggregate subscription price of USD 275,000,000.
The Company plans to redeem the preference shares in full over an estimated term of 12 years. The aggregate redemption and dividend payments on the preference shares are estimated to reflect approximately 25-30% of the estimated free cash flow after debt servicing in the Catcher contract over a similar term.
The net proceeds from the issue of the preference shares will be used for general corporate purposes.
"We are very pleased to secure this equity participation for the BW Catcher FPSO in cooperation with our strategic partner, ICBCL, and in line with our stated ambition to seek new ways of enabling further growth for the company", said Carl K. Arnet, the CEO of BWO. "ICBCL is a world-leading financial institution and a strong partner. Together we can deliver cost effective solutions to our clients in the oil and gas sector."
For further information, please contact:
Knut R. Sæthre, CFO, +47 911 17 876
About ICBC Financial Leasing Co., Ltd.:
ICBC Financial Leasing Co., Ltd. ("ICBCL") is a wholly owned subsidiary and the only leasing platform of Industrial and Commercial Bank of China, Ltd. ("ICBC"), the largest commercial bank in the world in terms of total asset and net profit. Benefits from the global network of ICBC, ICBCL's business spreads across 40 countries, and has a leading position in China's financial leasing industry, with business focus on aviation, shipping and offshore, and large equipment.
About BW Offshore:
BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 15 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange.