Aker supports construction of two product tankers at Aker Philadelphia Shipyard
With reference to earlier releases, i.a. Aker ASA's Q4 release dated February25, 2011, Aker ASA has on March 31 entered into certain agreements which helpsecure further shipbuilding activities for Aker Philadelphia Shipyard ASA, whereAker owns 71.2% through Converto Capital Fund. Aker's contribution, in additionto a $42m asset purchase from the Philadelphia Shipyard Development Corporation(PSDC) and third party construction financing will enable the construction oftwo new product tankers (ships 17 and 18) at the yard in Philadelphia andextends the public/private partnership. Please see separate release of even datefrom Aker Philadelphia Shipyard ASA for further details regarding the overalltransaction.
Aker has entered into a loan agreement with Aker Philadelphia Shipyard Inc.(APSI), a wholly owned subsidiary of Aker Philadelphia Shipyard ASA, wherebyAker ASA has made available a USD 30 million subordinated construction loan withfunding in two tranches of USD 15 million each. The loan will be secured by alien on ships 17 and 18. The loan can be repaid no sooner than upon delivery ofthe second ship, expected by 1H 2013, and full repayment can be delayed furtherif certain sales price thresholds are not met. Interest will be paid at maturityand the interest rate is on market terms.
Further, Aker has agreed to provide a performance guarantee and repurchaseagreement in connection with APSI's construction financing for ships 17 and 18from a third party provider in the amount of up to USD 40 million per ship. Theagreement will be on terms similar to the present performance guarantee andrepurchase agreement for the construction financing of ships 15 and 16 of up toUSD 75 million per ship, which will expire on the delivery of ship 16, expectedin May 2011.
Aker has also agreed to guarantee APSI's obligation to pay liquidated damages toPSDC in an amount up to USD 35 million per ship in the event APSI fails tocomplete construction of ships 17 and 18 within certain agreed-upon deadlines.As part of the transaction, PSDC has released APSI and Aker from the existingUSD 20 million "employment guarantee", provided to guarantee a minimum level ofemployment at the yard through the end of 2014.
This information is subject of the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.
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