Nordic American Offshore Announces Agreement with Lenders

NAO

Nordic American Offshore announced that it has reached agreement with the lenders under the Company’s $150 million Revolving Credit Facility, dated March 16, 2015 pursuant to which the lenders have agreed, upon satisfaction of certain conditions precedent by the Company, to the extension of waivers up until January 31, 2020.

The Company has also announced that the lenders have committed, upon satisfaction of certain conditions precedent by the Company, to a new $ 132.9 million term loan facility with maturity of December 6, 2023 to refinance the Credit Facility, which has an outstanding balance of $132.9 million as of the date of this press release.

As part of the above agreements, the Company will acquire thirteen vessels from Scorpio Offshore Holdings Inc. for consideration in common shares worth approximately $ 22.6 million in aggregate.

Additionally, the Company has announced that it has entered into a common stock purchase agreement (the “Equity Line of Credit”) with two affiliated entities which are accredited investors. The Equity Line of Credit provides for $ 20 million to be available on demand to the Company in exchange for common shares priced at 0.94 multiplied by the then-prevailing 30-day trailing VWAP. Clarksons Platou AS acted as advisor in this transaction.

Emanuele A. Lauro, Chairman and Chief Executive Officer, commented “Today marks a new beginning for Nordic American Offshore. With the shared commitment of our lenders and major shareholders, we are taking substantial action to reduce our overall leverage and provide visibility into our liquidity and our debt profile. As a result, the Company gains much-needed financial and operational flexibility at a time when the offshore market is showing incipient signs of improvement. In May we will have our entire 10 vessel PSV fleet operating and employed at rates significantly higher than those which prevailed one year ago. In the coming months we will be taking additional steps to improve our efficiency and deliver value to our shareholders, many of whom so patiently supported the Company through the recent months.”

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