Mermaid Maritime enters into loan facility agreement for up to US$10 mil

The company entered into a loan facility agreement with SinoPac Capital International (HK) on Dec 26.

Mermaid Maritime DU4 has announced that its wholly-owned subsidiary Mermaid Subsea Oil and Gas Services DMCEST has entered into a loan facility agreement of up to US$10 million ($13.2 million) with SinoPac Capital International (HK) on Dec 26.

The proceeds from the loan facility will be towards the reimbursement of the company’s equity used for the acquisition of its vessel “Mermaid Sapphire”.

The agreement contains a condition in which a mandatory default prepayment shall occur if Thoresen Thai Agencies holds less than 52% of the total issued share capital of Mermaid Maritime.

In such an event, the aggregate level of facilities that may be affected is approximately US$10 million, of which none has been drawn or remains outstanding as at Dec 26.

Thoresen has been a strategic shareholder of Mermaid Maritime since 1995 and became the company’s majority shareholder in 2005.

Shares in Mermaid Maritime closed 0.1 cents lower or 1.03% down at 9.6 cents on Dec 26.