Photo credit: Ziton / Wind Enterprise
Danish offshore wind specialist Ziton has struck an agreement with Siemens Gamesa Renewable Energy, extending the current time charter agreement for Wind Enterprise for four and a half years, while the parties will enter into a new six-years’ time charter agreement for a new vessel to be purchased. The two parties are purchasing the second vessel which is expected to be operational in the beginning of 2024.
The current time charter agreement for the Wind Enterprise expires on 31 October 2024 with Siemens Gamesa having various extension options to extend the current agreement until 20 June 2025.
As it is mentioned in the stock exchange announcement, the parties have now reached a deal for the extension of the time charter from 21 June 2025 to 31 December 2029 at terms reflecting the changes in the market environment since the original time charter was entered into in December 2020, including a higher day-rate.
Siemens Gamesa will retain an option for early termination of the contract against payment of a one-off compensation after January 2027.
Furthermore, the two companies have agreed a time charter of a new vessel on terms similar to the extension agreement for the Wind Enterprise. The time charter is expected to be initiated when the vessel is operational which is expected in the beginning of 2024. The time charter will end on 31 December 2029. For this time charter contract, Siemens Gamesa does not hold any options for early termination.
Ziton has an agreement to purchase the sister vessel to Wind Enterprise, subject to securing financing. The vessel has the same specifications as Wind Enterprise and was built a few months later than Wind Enterprise in 2011 at the same yard.
The total value of the remaining part of the Wind Enterprise time charter and the six-years’ time charter agreement for the sister vessel can amount up to around €373 million in the duration of the agreements, as Ziton said.
To support in financing the purchase of the sister vessel, Ziton has mandated Pareto Securities AB to conduct a series of fixed income meetings and, subject to market conditions, a bond issue in an amount of around €275 million may follow.
In accordance with the stock exchange announcement, the “net proceeds from the New Bonds are intended to be used to repay Ziton´s and subsidiary Wind Enterprise P/S outstanding bonds of an aggregate amount of approximately €173 million (excl. accrued interest and call premia), to finance the purchase of the sister vessel and related capital expenditure in an aggregate amount of €93 million, to repay drawn amounts under the RCF, and to finance transaction costs and general corporate purposes.”