Hornbeck Offshore Services, Inc. (NYSE: HOS) announced Monday that it has closed the sale of three offshore supply vessels to the U.S. Navy.
The type 250EDF OSVs – the HOS Arrowhead, the HOS Eagleview and the HOS Westwind – have been chartered to the U.S. Navy since their construction in 2008 and 2009, supporting the U.S. Navy’s submarine fleet on the east and west coast of the U.S. The Navy’s purchase of the vessels from Hornbeck was ordered by Congress.
The three vessels were sold for cash consideration of $114 million, which is expected to result in a gain on sale of assets of approximately $33.0 million, Hornbeck said in a statement. The vessel purchase agreement includes an option for the acquisition of a fourth vessel currently under charter to the U.S. Navy, the HOS Black Powder, that if exercised as anticipated, would bring the sale amount to $152 million.
In addition to the sale, Hornbeck also entered into an operations and maintenance contract for the three vessels, with an initial term and annual renewal options spanning a 10-year operating period including annual dayrate escalations. Hornbeck was also awarded a time charter for the HOS Black Powder that will remain in effect until the closing of the anticipated sale of the vessel by the end of the third quarter of 2015. At that time, the HOS Black Powder will operate under the same terms and conditions of the current O&M contract for the other three vessels. As a result of the new contracts, the Company now expects to operate the HOS Black Powder under a 215-day time charter beginning February 28, 2015 at an average dayrate of just over $30,000.
Hornbeck Offshore currently owns a fleet of 65 vessels primarily serving the energy industry and has eight additional high-spec Upstream vessels under construction for delivery through 2016.
Hornbeck’s press release announcing the sale and updates to the company’s Fiscal 2015 Guidance can be found HERE.