New CSOVs and contemplated private placement
Haugesund, 2 March 2023: Edda Wind ASA (the “Edda Wind” or the “Company”) today announces that it has (through subsidiaries) agreed contracts with Vard for four commissioning service operation vessels (CSOV) newbuilds to be constructed, the first two of which are expected to be delivered in Q1 2025, the third in Q2 2025, and the fourth in Q1 2026.The contract price is EUR 63 million per new vessel based on 5x20% installment milestone structure, in addition to owner-furnished equipment and building supervision costs. The Company has also secured options for 2+2 additional CSOV vessels, with expected delivery dates in 2025 and 2026 (if declared). With delivery of these additional newbuilds, Edda Wind will become the leading offshore wind service vessel provider.
The Company has had good access to debt financing and expects to secure debt financing for the four newbuilds ahead of delivery. The Company has secured financing for nine of its ten pre-existing newbuilds at attractive terms, including a recently announced green loan facility for the pre- and postdelivery financing of four vessels under construction, for a minimum – maximum amount of EUR 100 to EUR 120 million and term of six years from delivery. Following this agreement, nine of the ten pre-existing vessels in the fleet have secured long term financing.
Edda Wind is regularly tendering and negotiating with clients for new contracts. Currently, Edda Wind is in an advanced stage of negotiations with an industry major in relation to contracts for about 750 firm trading days in 2023 and 2024 at rates above historical levels and in the range as forecasted by analysts. No assurance can be made that any such agreement will be entered into.
