Cecon Restructures Financing for Its Newbuilds

Cecon ASA, through its subsidiary Rever Offshore AS (Rever), has reached an agreement to restructure and extend the existing financing related to the construction of their three offshore construction vessels (hulls 717, 718, and 719) at Chantier Davie yard in Quebec, Canada.
The Restructuring provides Rever with necessary working capital financing, allowing the company to fund start-up costs of 717 and initiate the completion of hulls 718 and 719 earlier than under the current financing, which is expected to reduce overall construction cost and expedite the delivery of the vessels.
The key elements of the Restructuring can be summarized as follows:
The construction of hull 717 is on schedule for delivery by March 2014. The total price including variation orders is expected to be within 10% of the earlier communicated shipyard price. The final contract for construction of hull 718 and hull 719 is in final phases of negotiation.

Cecon ASA, November 8, 2013; Image: Chantier Davie yard