Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Long-term Debt

Note 4 - Long-term Debt
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Long-term Debt [Text Block]
Convertible Senior Notes. 
December 1, 2015,
the Company issued
million in aggregate principal amount of its Convertible Senior Notes (the “Convertible Senior Notes”), at an interest rate of
December 1, 2022,
to investment funds managed and controlled by the Carlyle Group (collectively “Carlyle”). The Convertible Senior Notes are convertible into shares of Common Stock at a conversion rate of
shares per
in principal amount of such notes, subject to certain conditions, or, into Warrants to purchase an equal number of shares of Common Stock at an exercise price of
per share in order to facilitate the Company's compliance with the provisions of the Jones Act.
May 2, 2018,
the Company and Carlyle entered into an exchange transaction (the “Exchange”) pursuant to which Carlyle exchanged
million in principal amount of the Convertible Senior Notes for Warrants to purchase
shares of Common Stoc
k (to facilitate compliance with the provisions of the Jones Act) at an exercise price of
per share, subject to adjustments (the “Carlyle Warrants”), representing an implied exchange rate of approximately
shares per
in principal amount of the Convertible Senior Notes (equivalent to an exchange price of
per share). The Carlyle Warrants have a
-year term, which commenced
May 2, 2018.
The Company and Carlyle also amended the
million in p
rincipal amount of Convertible Senior Notes that remained outstanding following the Exchange to (i) increase the interest rate from
per annum to
per annum and (ii) extend the maturity date of the Convertible Senior Notes by
months to
December 1, 2023
.  Interest on the Convertible Senior Notes is payable semi-annually on
June 15
December 15
of each year.  
MOI Joint Venture.
February 8, 2018,
a wholly-owned subsidiary of the Company and MOI formed and capitalized a joint venture named Falcon Global Holdings LLC.  In connection therewith and MOI’s plan of reorganization, which was confirmed on
January 18, 2018,
MOI emerged from its Chapter
bankruptcy case. In accordance with the terms of a Joint Venture Contribution and Formation Agreement, the Company and MOI contributed certain liftboat vessels and other related assets to FGH and its designated subsidiaries, and FGH and its designated subsidiaries assumed certain operating liabilities and indebtedness associated with the liftboat vessels and related assets. On
February 8, 2018,
Falcon Global USA LLC (“FGUSA”), a wholly-owned subsidiary of FGH, paid
million of MOI’s debtor-in-possession obligations and entered into a
million credit agreement comprised of a
million term loan (the “FGUSA Term Loan”) and a
million revolving loan facility (the “FGUSA Revolving Loan Facility”) bearing interest at a variable rate (currently
), maturing in
and secured by vessels owned by wholly-owned subsidiaries of FGUSA (the “FGUSA Credit Facility”). The full amount of the FGUSA Term Loan and other amounts paid by affiliates of MOI satisfied in full the amounts outstanding under MOI’s pre-petition credit facilities. The FGUSA Credit Facility, apart from a guarantee of certain interest payments and participation fees for
years after the closing of the transactions, is non-recourse to SEACOR Marine and its subsidiaries other than FGUSA. The Company performed a fair market valuation of the debt reflecting a debt discount of
million, which will be amortized over the life of the FGUSA Credit Facility. Scheduled principal payments begin in
During the
months ending
June 30, 2018
the Company borrowed
million under the FGUSA Revolving Loan Facility for working capital purposes.  The Company consolidates FGH as the Company holds 
of the equity interest in FGH and is entitled to appoint a majority of the board of managers of FGH.
ring the
months ended
June 30, 2018,
the Company converted
million denominated debt to pound sterling debt, paying off approximately
million in euro debt and borrowing approximately
million in pound sterling debt, resulting in a net increase in USD borrowings of
million to be used for future capital commitments.
Letters of Credit
As of
June 30, 2018,
the Company had outstanding letters of credit of
million securing
long-term debt obligation, and
million for labor and performance guarantees.