S.D. Standard ETC Plc: Update on Standard Supply AS
(Limassol, 28 June 2022) S.D. Standard ETC Plc (Standard ETC, OSE:SDSD) todayannounces that Standard Supply AS (Standard Supply), whereof Standard ETC ownsc. 70%, has acquired the Platform Supply Vessel (PSV) Standard Defender for NOK
204 million as part of the growth strategy.
Further reference is made to Standard Supply’s press releases on June 27th and June 28th.
To enable Standard Supply to grow at an early phase of an identified upcycle for oil service vessels, Standard ETC has arranged for a USD 20m revolving credit facility (“RCF”) at a margin of 5%, an upfront fee of 0.75% and maturity December 31th 2023.
“We continue to look for growth opportunities and believe these acquisition represents attractive entry points considering strong underlying earnings and approximately 65% and 50% discount to replacement cost, respectively. The vessels will grow Standard Supply’s asset base to a total of nine PSVs, and is in accordance with its strategy to expand its footprint within the PSV industry.
Providing financial flexibility will allow Standard Supply to lever its expansion opportunities into this upturn cycle for oil service vessels,” says Martin Nes, Chairman of Standard ETC.
Standard Supply is expected to be listed on Euronext Growth on or about July 22nd 2022.