BOURBON (EPA:GBB) Bourbon - US$1.5 billion for the sale and bareboat charter of 51 vessels with ICBC Financial Leasing

Transparency directive : regulatory news

09/04/2013 18:05

Press release

                                                         Paris, April 9th 2013

                   Rolling out "TRANSFORMING FOR BEYOND"

      BOURBON and ICBC Financial Leasing (China) signed an operating lease
                  Framework agreement for up to US$1.5 billion
            corresponding to the sale and bareboat charter back for
                          10 years of up to 51 vessels

BOURBON is rolling out a transformation plan for its future growth. As part of
its "TRANSFORM ING FOR BEYOND" project, BOURBON has decided to sell vessels
worth US$2.5 billion from its fleet and retain the vessels on bareboat charter
for a period of 10 years.

The terms of a first phase of the financial aspect of "TRANSFORMING FOR BEYOND"
was signed off on April 9th with the Chinese company ICBC Financial Leasing for
up to 51 supply vessels either in operation (24) or under construction (27 with
delivery within 14 months) for a total of up to US$1.5 billion. The transaction
will be closed within 2 months of its signing following completion of each party
procedures.

The main features of this operation are:
  - the sale of vessels at market price with a vendor loan of a maximum of
    US$116 million;
  - bareboat vessel lease at a fixed rate over 10 years of 10.66% of the sale
    price;
  - right of first refusal in the event of ICBC Financial Leasing selling
    vessels during lease period.

Based on market price estimates, BOURBON would realise a capital gain of
approximately 12% of the total value of the vessel sale. BOURBON's accounts
would see asset deconsolidation (operational leasing) leading to a gradual
reduction in total net debt of the company.

"This operation, related to an innovative and highly productive fleet that has
already proved itself to its customers, reflects the overall trust in BOURBON
throughout the industry as a vessel operator" says Mr. Christian LEFEVRE, CEO
of BOURBON. "This operation won't affect our fleet standardisation strategy as
the vessels in the bareboat lease come from our vessel series; they have been
designed and built to our standards and BOURBON retains full operational
responsibility for its vessels. This initial phase of "TRANSFORMING FOR BEYOND"
allows us to prepare for our growth plan beyond 2015 with stronger financial
backing."

"As a wholly owned subsidiary of the world's largest commercial bank, ICBC
Leasing is delighted to work together with BOURBON to carry the deal a step
forward. BOURBON, as the global leader in this sector, has given us full trust
and complete understanding in this project. Through this project, we would like
to establish a long and stable relation of cooperation with BOURBON, further
expand our leasing business in offshore market, and set up business relations
with more domestic and overseas corporations in the future" says Mr. Lin CONG,
the President of ICBC Financial Leasing co. ltd.

Upon completion of this operation with the last vessel to be delivered
mid-2014, BOURBON would operate 230 supply vessels (PSV, AHTS, IMR), including
54 under bareboat charter.
BOURBON operated a total fleet of 458 vessels, including supply vessels and
crewboats, as of December 31, 2012.

              About the "TRANSFORMING FOR BEYOND" action plan
                 and the "ASSET SMART" financial strategy

"TRANSFORM ING FOR BEYOND" is the last action plan which laid down the
foundations for BOURBON's future growth plan beyond 2015 and is focused on 4
different directions :

  * "My BOURBON": a transparent and personalized customer relation platform to
    improve the common fruits of our working together.
  * "Under the flag of excellence": for all our staff this means growing and
    evolving together. What can BOURBON do for them? What does each of them
    want to do for BOURBON?
  * The "BOURBON way": striving for operational excellence and cost control by
    developing the existing tools.
  * "Asset smart": building a strong financial foundation through our
    investment strategy.

With regard to the financial aspect of "TRANSFORMING FOR BEYOND", the Board of
Directors of BOURBON has approved the sale and bareboat chartering for 10 years
of US$2.5 billion of new or existing vessels. The first phase of the program
has been signed for up to 51 vessels and US$1.5 billion with ICBC Financial
Leasing (China).

Through "TRANSFORMING FOR BEYOND", BOURBON wants to enlarge the scope of
achievable strategies beyond 2015 and be ready to deliver growth and value
creation further.

About BOURBON

BOURBON offers the most demanding oil and gas companies a comprehensive range
of surface and subsea marine services for offshore oil and gas fields and wind
farms, based on an extensive range of latest-generation vessels. The Group
provides a local service through its 27 operating subsidiaries, close to
clients and their operations, and it guarantees the highest standards of
service quality and safety worldwide.

BOURBON has two Businesses (Marine Services and Subsea Services) and also
protects the French coastline for the French Navy.

Under the "BOURBON 2015 Leadership Strategy" plan, the Group is investing in a
large fleet of innovative and high-performance offshore vessels built in
series.

In 2012, BOURBON posted revenues of EUR1.187 billion and operated a fleet of
458 vessels as of December 31, 2012

Classified by ICB (Industry Classification Benchmark) in the "Oil Services"
sector, BOURBON is listed for trading on Euronext Paris, Compartment A,
participates in the Deferred Settlement Service ("SRD") and is included in the
SBF 120 and CAC Mid 60 indices.

About ICBC Financial Leasing co.ltd.

ICBC Leasing focus is commodities and energy shipping. They are currently
managing a fleet of some 200 vessels consisting of dry bulk, tanker,
containership, PCTC, Luxury Cruise Vessel, Offshore Support Vessel, Drilling
Rigs, Chemical Tankers and inland general cargo vessels. Meanwhile ICBC Leasing
also actively supports the development of the maritime economy and is expanding
to offshore industry.

Based on its well defined client orientation, abundant operational experience
and professional management in shipping, ICBC Leasing provides a systematic
integrated service for all segments of domestic and foreign shipping
enterprises.

In addition, through collaboration with classification societies, ship research
institutes and ship-owners' associations, ICBC Leasing is making contribution
to the healthy and sustainability of the shipping industry by actively
participating in the design, manufacturing and operation of vessels aiming to
improve environmental friendliness, economic efficiency and operational
effectiveness of vessels.

CONTACTS

PR Agency : Publicis Consultants
Jérôme Goaer             + 33 (0)1 44 82 46 24 -
                         jerome.goaer@consultants.publicis.fr
Véronique Duhoux         +33 (0)1 44 82 46 33 -
                         veronique.duhoux@consultants.publicis.fr

BOURBON Investors - Analysts - Shareholders Relations
James Fraser             +33 (0)4 91 13 35 45 -
                         james.fraser@bourbon-online.com

Communication Department
Christa Roqueblave       +33 (0)1 40 13 86 06 -
                         christa.roqueblave@bourbon-online.com

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BOURBON (EPA:GBB) Bourbon - US$1.5 billion for the sale and bareboat charter of 51 vessels with ICBC Financial Leasing

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