Montco Offshore, Seacor Marine close on formation of joint venture

By Caroline Salls

Pittsburgh, Feb. 9 – Montco Offshore, LLC and Seacor Marine Holdings Inc. closed on the formation and capitalization of a new joint venture company on Thursday, according to a Seacor news release.

In accordance with the terms of a contribution and formation agreement, Seacor said it and Montco contributed liftboat vessels and other related assets to the joint venture, and the joint venture assumed some operating liabilities and debt associated with the liftboat vessels and related assets.

According to the release, the joint venture consolidates the ownership and operation of 11 liftboat vessels previously operated by a wholly owned subsidiary of Seacor, six liftboat vessels previously operated by Montco and two liftboat vessels previously operated by a previously existing joint venture between affiliates of the companies.

Seacor said the joint venture assumed $131 million of debt from Montco’s pre-bankruptcy facilities, which, apart from a guarantee of interest payments for two years after the closing of the transactions, is non-recourse to Seacor.

Seacor holds 72% of all equity interests in the joint venture and is entitled to appoint a majority of the joint venture’s board of managers, the release said.

According to an 8-K filed Friday with the Securities and Exchange Commission by Seacor Marine, a subsidiary of the joint venture company, Falcon Global Holdings LLC, entered into a credit agreement for a $131.1 million loan facility comprised of a $116.1 million term loan and a $15 million revolving loan facility with a syndicate of lenders administered by JPMorgan Chase Bank, NA.

Seacor said $116.1 million of the credit facility proceeds were used to satisfy in full amounts outstanding under a credit agreement between Montco and Orgeron Real Estate, LLC in conjunction with Montco’s Chapter 11 plan, and $5 million was drawn under the revolver for working capital purposes.

The Falcon Global credit facility bears interest at Libor plus a margin ranging from 190 basis points to 600 bps, based on the currency of the borrowing and whether the borrowing was part of the revolving loan or the term loan, among other factors.

The credit facility will mature on Feb. 8, 2024.

Seacor Marine issued an obligation guaranty related to limited obligations of Falcon Global under the credit facility, the 8-K said.

Houston-based Montco operates lift boats for the offshore energy industry. The company filed for bankruptcy on March 17, 2017 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 17-31646.

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