US Navy purchases three OSVs from Hornbeck Offshore

3 March 2015 (Last Updated March 3rd, 2015 18:30)

The US Navy has purchased three 250EDF class offshore supply vessels (OSVs) from Hornbeck Offshore Services for a cash consideration of $114m.

The US Navy has purchased three 250EDF class offshore supply vessels (OSVs) from Hornbeck Offshore Services for a cash consideration of $114m.

Constructed between 2008 and 2009, the three OSVs, named HOS Arrowhead, HOS Eagleview and HOS Westwind, were previously chartered to the navy.

The vessels were deployed to support the navy's submarine fleet on the east and west coast of the US, and the acquisition will enable the navy to continue receiving support.

"The acquisition will enable the navy to continue receiving support."

The acquisition agreement includes an option for the purchase of a fourth vessel, the HOS Black Powder, which is currently under charter to the navy. The total purchase value for the boats will amount to $152m, if the navy chooses to exercise the option for the fourth OSV.

Additionally, the company has been contracted for the operation and maintenance (O&M) of the boats, with an initial term and annual renewal options spanning a ten-year operating period.

Hornbeck has also been awarded a time charter for the HOS Black Powder, which will be effective until the navy exercises the purchase option for the vessel.

The sale of HOS Black Powder is expected to complete by the end of the third quarter of this year and is subject to government funding.

Hornbeck will use the proceeds from the sale for general corporate purposes, including retirement of debt, funding for the acquisition, construction or retrofit of vessels or discretionary share repurchases.