Trico Marine Services, Inc. has closed its previously announced
refinancing of its existing U.S. revolving credit facility ("U.S. Dollar
Facility"). The Company refinanced the U.S. Dollar Facility to relieve the
Company of the maintenance debt covenants under that existing facility and to
add operating flexibility. The Company's new $55 million senior secured
credit facility ("New Credit Facility") is secured by 43 supply vessels. The
New Credit Facility is a floating rate facility, was priced at a 600 basis
point spread over LIBOR with base rate of LIBOR not less than 2.0%, has an
original issue discount of 2.0% and is subject to incurrence-based covenants.
The net proceeds from the New Credit Facility are approximately
$51.4 million after deducting the original issue discount and estimated
offering expenses. Net proceeds from the New Credit Facility will be used to
retire and repay indebtedness of $31.0 million aggregate principal under the
U.S. Dollar Facility, collateralize a letter of credit facility and for
general corporate purposes. The New Credit Facility has a maturity of
February 2009 and will have two years of call protection. In addition to
extending the maturity for the Company's credit facility, the refinancing will
also provide incremental available liquidity.