February 20, 2003Tidewater buys ENSCO fleetTidewater Inc. announced today that it has entered into an agreement with ENSCO International Incorporated to acquire ENSCO’s 27-vessel Gulf of Mexico based marine fleet. The five anchor handling towing-supply vessels, six modern large capacity 220-foot “stretched” platform supply vessels, 13 standard supply vessels and three utility vessels are being acquired for a cash price of $79 million. The deal includes a provision that affords Tidewater the opportunity to provide supply, anchor handling and towing vessels to ENSCO for its Gulf of Mexico operations. ENSCO is one of the world’s premier drilling contractors. The transaction is subject to regulatory review and is expected to close in early April 2003. “We view this as an outstanding opportunity for Tidewater and its shareholders,” commented Dean E. Taylor, CEO and President of Tidewater. “This acquisition will place Tidewater in a better competitive position in the business of anchor handling and towing-supply services in the Gulf of Mexico. The six very capable stretched and upgraded platform supply vessels certainly help us to accelerate our domestic fleet replacement program. The remaining vessels allow us to better position ourselves for an upturn in the domestic market. Additionally, we are looking forward to the opportunity to welcome many of the professional mariners of ENSCO as Tidewater employees.” The acquisition will be financed through a group of banks already participating in Tidewater’s revolving credit facility."
Hornbeck Offshore Services, Inc. has acquired five 220-foot class deepwater offshore supply vessels and their related business from Candy Marine Investment Corporation, an affiliate of Candy Fleet Corporation, for an undisclosed amount of cash and Hornbeck common stock. Candy Fleet is a privately held marine vessel operator in the Gulf of Mexico.
August 12, 2002Conrad to acquire SwiftshipsConrad Industries, Inc., Morgan City, Louisiana, has executed a letter of intent for the purchase of the assets of another Morgan City shipbuilder: Swiftships Shipbuilders, LLC and Swiftships Technologies, LLC, for approximately $12.5 million in cash. The Swiftships companies would also be eligible to receive an additional amount based on the performance of the assets during a three-year period after the closing. The Swiftships companies would use the proceeds of the asset sale to pay creditors. The letter of intent is non-binding with respect to the proposed acquisition, which is subject to the execution and closing of a definitive agreement. Swiftships designs, builds, overhauls and repairs aluminum crew/supply boats, aluminum patrol boats and other marine vessels at two shipyards in Morgan City and employs approximately 130 people. During an over 30-year history, Swiftships and its predecessors have designed and constructed over 530 vessels ranging in size from 30 feet to 225 feet in length for domestic and foreign, commercial and government customers. Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore support vessels and other steel and aluminum products. It provides repair and new construction services at its three shipyards located in southern Louisiana and Texas.The letter of intent contains a binding exclusivity agreement. The Swiftships parties have agreed that before October 31, 2002 they will negotiate exclusively with Conrad and not solicit any competing acquisition proposal or enter into any agreement with respect to a competing acquisition proposal. If prior to the end of the exclusivity period or within 180 days thereafter, any of the Swiftships parties accepts or enters into any agreement with respect to any competing acquisition proposal, the Swiftships parties must pay Conrad a fee of $1 million payable at the time the transaction contemplated by the competing acquisition proposal is consummated. In connection with the letter of intent, Conrad has entered into a loan agreement pursuant to which it has agreed to lend on a secured basis up to $500,000 from time to time to Swiftships Shipbuilders, LLC prior to the execution of a definitive asset purchase agreement and up to an additional $500,000 thereafter, for purposes approved by Conrad. The loan is due on the earlier of September 30, 2002 or the closing of a definitive asset purchase agreement. Conrad President and CEO Kenneth G. "Jerry" Myers stated, "We believe Swiftships' aluminum crew/supply boats set the design and operational standards in the Gulf of Mexico against which others are measured. With Swiftships' experienced and dedicated workforce along with its designs and marketing expertise, Conrad will be able to significantly enhance and expand our products, services and customer base. Conrad will also gain entrance into the international commercial and government markets as Swiftships has successfully marketed and delivered products to over 75 countries over the past 30 years. The acquisition affords Conrad the opportunity for sustained growth in a different market segment than we currently operate. We are looking forward to working with the Swift companies to complete the acquisition process."
Comments and/orInquiriesWelcomed Shipbuilding Technologies in CanadaThese pages give a quick overview of the shipbuilding industry in Canada. Click on the text below to skip to the topic of interest to you. A Brief History of Shipbuilding in Canada Canadian Shipyards Recent Shipyard Activity Ship Design and Construction Look at some ship designs A BRIEF HISTORY OF SHIPBUILDING IN CANADA --------------------------------------------------------------------------------The heyday of Canadian shipbuilding was in the years 1840 to the early 1880s, when wooden sailing ships ruled the waves. These years meant great opportunities for the maritime provinces and Quebec since they had the natural advantage of plentiful forest resources and a close connection to the large shipping industry in the United Kingdom. In the peak shipbuilding years during the 1870s Canada produced 500 to 600 vessels per year, making her the fourth largest producer of ships in the world. By the late 1870s steel hulled ships propelled by steam engines were rapidly replacing the wooden sailing ships. Canada's timber was no longer required and our shipyards did not have easy access to steel resources (no steel was being produced in Canada) and had not adopted steel shipbuilding techniques. The industry quickly went into a severe decline. During the First World War (1914-1918) the losses of merchant shipping to the German U-boats was keeping British yards so busy some of the new building work eventually spilled over to Canada. Canadian shipyards rose to the occasion and produced 41 steel hulled ships of over 1800 tons deadweight. The need for these ships ended with the war in 1918, but the Canadian government continued to support the industry for a time by ordering ships from its own yards for a new government owned merchant marine corporation called CGMM Ltd. By 1921 however CGMM ships were not competing well in the rapidly changing world shipping industry, and once again shipbuilding in Canada went into a slump. The industry struggled along mostly by doing ship repair work. The Second World War (1939-1945) brought about one of the proudest accomplishments in Canadian manufacturing history. The shipyards in Canada turned from producing no new ocean going ships in 1939 to building 400 warships and an equal number of cargo vessels and tankers in the following six years, making her once again the fourth largest producer of ships in the world. By the end of the war Canada had the third largest navy in the world and was a significant maritime power. After the Second World War the need to rebuild european industry meant strong demand for transatlantic shipping. European shipyards were not in a position to meet all of the demand and so Canadian yards remained active supplying merchant ships. As european industry rebuilt they incorporated new technology and methods into their shipyards, eventually becoming more competitive than Canadian yards who did not have the investment funds necessary to modernize quickly. The growth of international trade in the 1950s and 1960s meant ship orders were plentiful enough that shipyards in Canada continued to receive orders. Government subsidies and assistance programs as well as government orders for ships throughout the 1960s and 1970s helped the industry to modernize. In more recent years orders for new ships from government departments and repair work has been the mainstay of the industry as foreign shipyards with lower labour costs, larger domestic markets and subsidization programs have made it difficult for Canadian yards to compete in the worldwide commercial market. Japan, South Korea and China currently dominate the market for new buildings. CANADIAN SHIPYARDS TODAY --------------------------------------------------------------------------------There are currently seven large shipyards in Canada capable of building ocean going ships and a large number of smaller yards doing ship repair work and producing small to medium sized vessels. The main shipyards in Canada today are located regionally on the East Coast, the West Coast , and the Great Lakes. The East Coast Halifax Shipyards Ltd., located in Halifax, Nova Scotia it is owned by Saint John Shipbuilding and includes the Dartmouth Marine Slips located across the harbour in Dartmouth. Marystown Shipyard Ltd., in Marystown, Newfoundland MIL Davie Shipbuilding, Lauzon, Quebec Saint John Shipbuilding Ltd. of Saint John, New Brunswick The Great Lakes Region Port Weller Dry Docks - St. Catherines, Ontario, a division of Canadian Shipbuilding and Engineering Ltd. The West Coast Allied Shipbuilders, Vancouver, British Columbia Vancouver Shipyards Co. Ltd., Vancouver, British Columbia Shipbuilding and ship repair work in the canadian yards is supported and supplied by a several large naval architecture and marine engineering firms, marine surveyors, government agencies (particularly Transport Canada) and hundreds of varied marine equipment suppliers. RECENT SHIPYARD ACTIVITY --------------------------------------------------------------------------------Today in Canada some major shipbuilding programs include: Allied Shipbuilders Ltd. of Vancouver with Naval Architects Robert W. Allan Ltd and Austal Ships of Sydney, Australia are building three fast ferries for BC Ferry Corporation's Vancouver to Vancouver Island route. The ferries are 1000 passenger, 250 car capacity ferries capable of 37 knots. The first ship will be delivered in early 1997. Saint John Shipbuilding Ltd. of Saint John, New Brunswick has recently completed the last of twelve 134 metre , 4800 tonne HALIFAX class patrol frigates for the navy. Three of the twelve vessels were built in Lauzon, Quebec by MIL Davie . The vessels are state of the art general purpose frigates intended to replace an older fleet of steam driven destroyer escorts built over 30 years ago. SJSL is now working on the design of several container ships to be built over the next 2-3 years.MIL Davie Ltd. has also recently completed an extensive mid-life refit of four TRIBAL class destroyers for the Canadian Navy. Work included cruise engine replacement, and the installation of an air defence missile system. Halifax Shipyards Limited of Halifax, Nova Scotia has a $750 million contract to produce twelve 55 metre, 960 tonne Maritime Coastal Defence Vessels for the Naval Reserves to replace various small vessels used in reserve training and to give Canada's Naval Reserves a new role in coastal defence operations. Marystown Shipyard in Marystown, Newfoundland completed a $65 million contract with Maersk in June 1996 to build two 85 metre offshore supply vessels which will be used in the Hibernia offshore oil field. They have also won a contract to build hull pontoons and vertical stability columns for an offshore drilling rig to be used in the Gulf of Mexico. More recently MSL has won a contract to build two 38m tugs for the Whiffen Head oil transshipment facility under construction near Arnold's Cove, NF.Hibernia Management and Development Corp. Bull Arm, Newfoundland has completed an offshore oil rig gravity based structure for the $5.4 billion Hibernia Oilfield development program which is scheduled to begin producing oil in December 1997. SHIP DESIGN AND CONSTRUCTION --------------------------------------------------------------------------------Ships are built to satisfy a large number of different needs of the owners of the worlds' merchant and naval fleets, and those different needs result in some very different hull shapes and sizes, speed requirements, and propulsion types. Some of the more common vessel types include: Cargo Vessels - including bulk cargo, container vessels, roll on-roll off vessels, reefer vessels (refrigerated cargo), ore carriers, lakers (used for transportation on the Great Lakes), paper carriers, liquid food product carriers (fruit juices, molasses) Tankers - crude oil carriers, very large crude carrier and ultra large crude carriers , liquefied natural gas tankers, liquefied petroleum gas tankers, Oil/Bulk Ore carriers , chemical tankers, product tankersPassenger Vessels - cruise ships, car and passenger ferries, casino vessels, river boats, yachts Fishing Vessels - trawlers, seiners, factory ships Government Services - icebreakers, buoy tenders, search and rescue craft, fisheries patrol vessels, police and customs patrol vessels Research Vessels - hydrographic survey, seismic survey, oceanographic research Support Vessels - tugs, fire fighting vessels, cable layers, dredges, barges, heavy lift ships, floating cranes Offshore Oilfield Development Vessels
Hornbeck funded the cash portion of the purchase price with a combination of borrowings under the its revolving credit facility and proceeds from a private offering of its common stock. In connection with the private offering, which was primarily undertaken to fund a portion of the acquisition costs, Hornbeck received payment or binding subscriptions for $30.0 million of new common stock, including the shares issued directly to Candy Marine Investment Corporation, to fund the equity portion of the purchase price.
THE MARINE LOG FEATURES CALENDAR FOR 2003
Hornbeck buys deepwater OSVs
Concurrent with the transaction, Hornbeck increased the borrowing base on its revolver from $25.0 million to $50.0 million. Hornbeck plans to continue operating the acquired OSVs, which have an average age of approximately 4.5 years, in the deepwater Gulf of Mexico.
July 7, 2003
Todd Hornbeck, President and CEO, stated, "We are very excited about this acquisition, which adds a sixth new class of deepwater OSVs to complement our existing fleet. This will further diversify our service offering to include additional vessels that are well suited not only for the deepwater, but for deeper drilling on the Continental Shelf of the Gulf of Mexico. With this purchase, our current deepwater OSV fleet will increase from 15 to 20 vessels, without adding capacity to the market. We will have 22 deepwater OSVs after the delivery of our next two newbuilds later this year. Based on our projections, this transaction will be accretive to earnings. In addition, our use of private equity to fund the majority of the purchase price will improve our leverage and interest coverage ratios."