Note 15 - Solstad Vessel Acquisition

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Asset Acquisition [Text Block]

(15) SOLSTAD VESSEL ACQUISITION

On March 7, 2023, we entered into an Agreement for the Sale and Purchase of Vessels, Charter Parties and Other Assets (the “Original Acquisition Agreement”), with certain subsidiaries of Solstad Offshore ASA, a Norwegian public limited company (collectively, the “Sellers”), pursuant to which we agreed to acquire from the Sellers (the “Solstad Acquisition”): (i) 37 platform supply vessels owned by the Sellers (the “Solstad Vessels”); (ii) the charter parties governing certain of the Solstad Vessels; and (iii) the Economic Interest (as defined in the Acquisition Agreement) in certain charter parties as specified therein. On June 20, 2023, we and the Sellers executed a First Amendment (the “First Amendment”) to the Original Acquisition Agreement to clarify certain closing matters related to the Solstad Acquisition (the First Amendment, together with the Original Acquisition Agreement, the “Acquisition Agreement”). Subsequent to the end of the second quarter of 2023, on July 5, 2023, we completed the Solstad Acquisition with the Sellers for an aggregate cash purchase price of approximately $580.0 million, consisting of the previously disclosed $577.0 million base purchase price along with an initial $3.0 million purchase price adjustment, which will be further adjusted for bunkers and other consumables within 14 days after closing. The purchase price was funded through a combination of cash on hand, net proceeds from the Senior Secured Term Loan and from the Senior Unsecured Notes. See Note 9 for additional disclosure on the Senior Secured Term Loan and Senior Unsecured Notes.