UAE-based offshore contractor Lamprell has been able to find funds for the continuation of the construction of two IMI newbuild jack-up rigs.
Lamprell has agreed, in principle, the structure and commercial terms of a $45 million UAE Export Credit Agency backed revolving trade loan facility with two regional banks.
The company said that this initial facility would assist with the working capital requirements of the two IMI newbuild jack-up rigs, which are currently under construction at Lamprell’s Hamriyah yard.
As part of the terms of the initial facility, there is an option of a further $45 million accordion funding arrangement subject to the provision of additional security to the banks similar to that for the initial facility, which will be agreed in due course and is expected to be available in the first quarter of 2022.
The drawdown of the initial facility will be conditional on, amongst other things, the company successfully completing a 19.99 percent equity raise. As previously announced, Lamprell expects to undertake the equity raise in the fourth quarter of 2021 and raise a minimum of $30 million.
The company stated in previous announcements that the capital raised through equity would be used to meet the working capital requirements of the IMI rig projects.
Once delivered, the final milestone payments will be invested in the company’s facilities to increase efficiency and capacity to grow in particular the renewables business unit, and to fund the outstanding equity investment in the IMI joint venture in Saudi Arabia.
As for the rigs, Lamprell secured an order to build two newbuild jack-up rigs for IMI in early 2020 following a letter of intent from December 2018. It is worth mentioning that IMI is a joint venture between Saudi Aramco, Lamprell, Bahri, and HHI.
Under the order agreement, the two rigs were supposed to be built collaboratively between IMI and Lamprell, with Lamprell’s share of project value amounting to around $350 million. The majority of the work is being performed by the company’s UAE facilities with final commissioning works to be undertaken in Saudi Arabia.