HOUSTON, Nov. 30, 2007 (PRIME NEWSWIRE) -- Superior Offshore International, Inc. (Nasdaq:DEEP) announced today that it has received an $80 million, 5-year term loan commitment from AIG Equipment Finance Company. This new facility will replace the Company's existing $55 million term loan with Fortis Capital Corp and will have an interest rate of LIBOR plus 400 basis points, with a scheduled rate reduction upon the delivery of the Superior Achiever.
"The expanded term loan facility will provide us with additional capital flexibility to fund future capital expenditures associated with the Superior Achiever, our DP-III vessel, which is under construction and is expected to go into service in the second half of 2008," said Jim Mermis, Superior Offshore's President and Chief Executive Officer.
The new term loan facility is expected to be closed on or before Dec. 21, 2007, in accordance with the terms of the Company's November 14, 2007 waiver from Fortis Capital.
About Superior Offshore International
Superior Offshore International is a leading provider of subsea construction and commercial diving services to the offshore oil and gas industry, serving operators internationally and domestically in the outer continental shelf of the U.S. Gulf of Mexico. Construction services include installation, upgrading and decommissioning of pipelines and production infrastructure. Commercial diving services include inspection, maintenance and repair services and support services for subsea construction and salvage operations. The company also operates a construction/fabrication division. Superior Offshore operates a fleet of 10 service vessels and provides remotely operated vehicles (ROVs) and saturation diving systems for deep water and harsh environment operations.
The Superior Offshore International, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3909
Forward-Looking Statements
Certain statements contained in this news release are forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements include expected uses of proceeds from the new term loan; the expected terms of the new term loan; expected drydocking and construction schedules and the dates vessels and equipment will be placed in service; and the expected closing of the new term loan. We have based these statements on our assumptions and analyses in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances, including the conditions to which the term loan commitment is subject. Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. Although it is not possible to identify all factors, we continue to face many risks and uncertainties. Some of the factors that could cause actual future results to differ materially are described under the caption "Risk Factors" in our Prospectus, dated April 19, 2007 and filed with the Securities and Exchange Commission ("SEC") on April 20, 2007, and our other filings with the SEC, which may be obtained by visiting the Investor Relations section of our website under "Financial Information" at www.superioroffshore.com or from the SEC's website at www.sec.gov.