DOF Secures $1,025m Senior Secured Term Loan

Norwegian offshore vessel owner DOF has successfully secured a $1,025m senior secured term loan with a syndicate of ten banks, marking a significant milestone for the company.

In addition to the term loan, DOF has also inked a $50m revolving credit facility. These financial arrangements will be utilized to repay existing debt and for general corporate purposes, providing the company with greater flexibility and financial stability.

The facilities agreement includes an undrawn, uncommitted basket amount of $200m, which can be accessed for specified purposes, further enhancing DOF’s financial resources.

Under the terms of the loans, the interest margin will initially be set at 290 basis points for the first twelve months, with adjustments based on the company’s leverage as measured through Net Interest-Bearing Debt (NIBD) and Last Twelve Months (LTM) EBITDA.

DOF has also announced that the loans will enable the payout of quarterly dividends at $0.3 per share in the second quarter of the year, demonstrating the company’s commitment to rewarding its shareholders. Furthermore, the loans will facilitate a simplification of DOF’s corporate structure.

As part of the restructuring, DOF Offshore Holding will become the holding company for vessel-owning entities across the group, with the exception of vessels owned in DOF Subsea Brasil, Norskan, and the DOFCON joint venture.

“We appreciate the support from our existing and new banks in connection with this refinancing. This loan demonstrates access to competitive funding and is a testament to the strong market position within offshore and subsea services the team at DOF has built,” said Mons Aase, CEO of DOF.