Monday 16 May 2022

American Shipping ASA (“AMSC” or the “Company”) is pleased to announce its purchase of the offshore construction vessel Normand Maximus from Maximus Limited, a company controlled by its secured lenders (the “Transaction”). In conjunction with the Transaction AMSC will enter into a long-term bareboat agreement with a subsidiary of leading offshore services provider Solstad Offshore ASA (“Solstad”).

Total purchase price for the vessel is about USD 157 million and the Company expects to take delivery in Q4 2022. AMSC intends to finance the Transaction through 70% debt and the remaining amount through a combination of cash on hand and new equity. AMSC has already received indicative debt financing terms and has strong support from key stakeholders to finance the Transaction.

AMSC CEO, Pål Lothe Magnussen, comments “We are excited about this value accretive acquisition as it creates significant growth in cash flows and leads to a substantial increase in annual EBITDA. It also diversifies AMSC’s leasing portfolio and adds additional stable and predictable returns to our shareholders. We look forward to working together with Solstad as a long-term tonnage provider going forward. We have for some time been looking for the right growth opportunity and we are very satisfied with concluding on this transaction. The Transaction is accretive on all key financial metrics and is projected to produce more than 20% annual return on equity with strong running dividend yield. The offshore services market is in recovery and is currently experiencing increased activity and positive outlook. We believe the timing of the Transaction is favorable and the risk/reward attractive”.

The Normand Maximus is a premier offshore construction vessel and one of the most modern heavy duty subsea construction vessels globally. The vessel was built in 2016, has 2600m[2] working deck, accommodation capacity for 180 people and a carousel for flexible products with about 4000t capacity. Main workscope is laying flexible pipes and umbilicals and installation of subsea equipment. Additional workscope in the future includes installation of power cables for the offshore wind industry.