www.polarcus.com 1 8th annual marine money gulf ship finance conference wednesday, 7th march 2012,...
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www.polarcus.com 1
8th Annual Marine Money Gulf Ship Finance Conference
Wednesday, 7th March 2012, Emirates Towers Hotel – Dubai
www.polarcus.com 2
Polarcus – a seismic major
• Major provider of marine 3D seismic services globally
• Specialized Arctic offering with incorporated technologies
• 500+ highly experienced seismic and maritime employees
• Offices in Dubai, London, Houston, Singapore, and Rio
• Listed on Oslo Børs (OAX:PLCS); Market Cap USD~500 M
• ~12% market share in 2012 POLARCUS ALIMA
2008 2009 2010
Polarcus launched
2008 Polarcus N
adia
Polarcus N
aila
Polarcus A
sima
Polarcus A
lima
Polarcus S
amur
Polarcus S
elma
20122011
Q2– Polarcu
s Adira
Q1– Polarcu
s Amani
www.polarcus.com 3
RIGHTPLAN, RIGHTSIZE, RIGHTDESIGN
Fleet Key Features
• All new and uniform fleet
• Reduced noise and vibrations
• Ice class 1A (except Nadia & Naila ICE C)
• Improved transit performance
• New builds on time and on budget
2008 2009 2010
Polarcus launched
2008 Polarcus N
adia
Polarcus N
aila
Polarcus A
sima
Polarcus A
lima
Polarcus S
amur
Polarcus S
elma
20122011
Q2– Polarcu
s Adira
Q1– Polarcu
s Amani
POLARCUS NADIA & POLARCUS NAILA
12 Streamer 3D vessel
POLARCUS ASIMA & POLARCUS ALIMA
12 Streamer 3D vessel
POLARCUS SAMUR & Vyacheslav Tikhonov
8 Streamer 3D vessel
POLARCUS AMANI & POLARCUS ADIRA
12-14 Streamer 3D vessel
www.polarcus.com 4
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
Lehman Brothers went bust
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Raising
1.45$ billionin
Historically badfinancial climate
www.polarcus.com 5
• Founders equity USD 162 millionNOK 10.4/share or USD 2/share
• Zickerman family• Drydocks World Dubai• Management
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Polarcus Launched April 2008
Drydocks World - Dubai
www.polarcus.com 6
Sale lease back
• Sale lease back on the first two vessels
• USD 180 million• Implied interest rate ~12%• Loan structure backed by
Export Credit Agency
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 7
July 2008 – 2nd round of financing
• HY 55 – 13%, first pri. Samur • CB 35 – 8.5%, conversion +30%• Equity USD 50 million
NOK 12/share or USD 2.4/share
Just in time before
Lehman Brothers
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 8
Summer 2009 - Restructuring
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
Sold 2 vessels with a
buyback option at cost + USD 5 million
Transaction backed by Founders
www.polarcus.com 9
15 September 2009 – Bank debt
• USD 80 million for Asima• CIRR financing (OECD)• Fixed 3.93% plus bank margin• Maturity 12 years
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 10
IPO – 30 September 2009
• USD 125 millionNOK 4.5/share or USD 0.77/share
• 1st IPO in Norway, 3rd in Europesince financial crisis started
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 11
October 2010 – Buyback Alima (1st option)
• USD 55 million Bank debt fixed 3.93% (CIRR), 12 years
• USD 80 million HY, 2nd Pri12.5%, 5 years
• Equity USD 65 million NOK 5.15/ share or USD 0.90/share
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 12
November 2010 – Ordering vessels 7 & 8
• Equity USD 60 millionNOK 5.30/share or USD 0.93/share
• To be built in Norway due to 80% financing available throughExport Credit Agency
• Cost per vessel USD 168 million
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 13
February 2011 – Buyback of 2nd option
• CB USD 125 million2.875%, conversion price 32.5%
• Vessel to be bare boated to Sovcomflot from delivery in August 2011
• Bareboat EBITDA 25 million/year
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 14
Summer 2011 – The Quantum Leap
• USD 410 million Fleet bank facility• 5.6% fixed interest, 12 years maturity• Structured with security for 5 vessels
including the 2 new builds• Refinancing of the 13% HY• Average interest cost post drawdown ~7.5%
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 15
October 2011 – USD 80 million
• Equity USD 40 millionNOK 4.0/share (premium)
• NOK 230 million HY (USD 40m)14% interest
• Completes the Capex needs fornew builds
2008 2009 2010
Launch2008
Founders capital162M
20122011
HY 55M CB 35MEquity 50M
restructuring with sale of 2 vessels
Bank debt 80M
IPO 125Min equity
USD 410Mfleet bank facility
HY 80MBank debt 55MEquity 65M
Equity 60M
CB 125M
HY 40MEquity 40M
Sale Lease back180M (2 x 90M)
www.polarcus.com 16
Improved financial position
• Total financing of USD 1.45 billion secured
• Equity USD 507 million
• Debt USD 960 million
• Fleet bank facility of USD 410 million signed in Q3 2011
• Average weighted interest rate for the group ~7.5%
10
200
400
600
800
1000
1200
1400
1600
507
160
80
70
180
40
410
Bank loan
Unsecured Bonds
Sale lease back
Vendor financing
Bonds
Convertibles
Equity
www.polarcus.com 17
PLCS – Share price movements
01.0
4.08
11.0
5.08
20.0
6.08
30.0
7.08
08.0
9.08
18.1
0.08
27.1
1.08
06.0
1.09
15.0
2.09
27.0
3.09
06.0
5.09
15.0
6.09
25.0
7.09
03.0
9.09
13.1
0.09
22.1
1.09
01.0
1.10
10.0
2.10
22.0
3.10
01.0
5.10
10.0
6.10
20.0
7.10
29.0
8.10
08.1
0.10
17.1
1.10
27.1
2.10
05.0
2.11
17.0
3.11
26.0
4.11
05.0
6.11
15.0
7.11
24.0
8.11
03.1
0.11
12.1
1.11
22.1
2.11
31.0
1.12
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
10.4
12
4.5
5.15 5.34.0
Share price Issues
IPOReverse split
2:1
Founders capital
USD 140 M
MACONDO
Polarcus Alima
Polarcus AmaniPolarcus Adira
Polarcus SelmaV. Tikhonov
Private Placement
Fleet bank facility