THE WOODLANDS, Texas, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Trico Marine Services, Inc. (Nasdaq:TRMA) (the "Company" or "Trico") today announced the execution of agreements for the sale of two North Sea class vessels for an aggregate sales price of approximately $40 million. The first sale is currently scheduled to close in early October. The second sale is scheduled to close in late October 2009 and is subject to delivery and inspection in Hong Kong. The Company will utilize the proceeds to repay European bank debt outstanding. Both vessels will be sold to buyers in Asia.
The Company also announced that it has reached an agreement regarding the delivery of seven remaining subsea services vessels with the shipyard in India. The first three vessels will be delivered as currently scheduled between December 2009 and July 2010. The construction contracts for these three vessels have been amended to reduce the purchase price. Approximately $40 million of additional capital expenditures will be incurred between October 2009 and July 2010 to complete these three vessels.
Delivery of the last four subsea service vessels has been suspended and the Company preserves the right to cancel its obligation to take delivery of such vessels. Preserving the option to construct the remaining four vessels allows the Company flexibility in developing its strategic growth plans for subsea services to adjust for market conditions and liquidity needs at a future date. The effect of the indefinite suspension of delivery is to reduce previous committed capital expenditures for 2010 and 2011 by approximately $80 million.
The Company has previously disclosed its intent to concentrate on improving its balance sheet, reducing outstanding debt and strengthening near term liquidity. These two major asset sales, which are in the North Sea spot vessel market, reduce debt, improve liquidity and are consistent with the Company's strategy to reduce both its spot OSV exposure and its dependence on the supply vessel market. The amendments to the subsea service newbuild contracts ensure capacity for subsea services growth with the delivery of three subsea services vessels and also reduce 2010 and 2011 committed capital expenditures.
The Company also announced steps its Board of Directors has taken in its continuing effort to have the Company's governance provisions reflect best practices, including some revisions to governance provisions dating back to 2005. The Board will seek stockholder approval to declassify the Board, with stockholders voting on declassification at the 2010 annual meeting. Trico also announced that the Board has amended Trico's bylaws to:
* provide for a majority voting standard in uncontested elections and a plurality voting standard in contested elections; * amend the majority vote standard by requiring incumbent directors to agree to resign if they fail to receive a majority of the votes cast in an uncontested election; * refine the process by which stockholders may call a special meeting and clarifying that stockholders need not be record holders to call a special meeting; and * revise certain governance provisions in a manner designed to ensure consistency with the obligations set forth in the Company's certificate of incorporation.
The Board also amended the Company's corporate governance guidelines to provide that directors may not serve on more than three additional public company boards without approval by the Board. Joseph Compofelice, Trico's Chairman and Chief Executive Officer, commented, "The Board's actions today demonstrate our commitment to good corporate governance practices. These changes will enhance that commitment and strengthen our accountability to our stockholders."
For more information about Trico Marine Services, Inc. visit us on the web at www.tricomarine.com.
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Certain statements in this press release that are not historical fact may be "forward looking statements." Actual events may differ materially from those projected in any forward-looking statement. There are a number of important factors involving risks and uncertainties beyond the control of the Company that could cause actual events to differ materially from those expressed or implied by such forward-looking statements. A description of risks and uncertainties relating to Trico Marine Services, Inc. and its industry and other factors, which could affect the Company's results of operations or financial condition, are included in the Company's Securities and Exchange Commission filings. Trico undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report.