O TTO M ARINE L IMITED - Microsoft Internet Explorer - SGX

staff members who were hired from 2002 onwards in line with the revised management and reporting structure
and new business focus of our Group. In 2004, we started building offshore marine vessels.
Save as disclosed above, to the best of our Directors’ knowledge, we are not in any breach of any terms
and conditions or covenants associated with any credit arrangements or bank loans which could materially
affect our financial position and results or business operations or the investments of our Shareholders.
Indebtedness Since 31 May 2008 to the Latest Practicable Date
As at the Latest Practicable Date, we have obtained a vessel construction loan of US$85.0 million from
UOB, a revolving credit facility of S$20.0 million, two vessel construction facilities in an aggregate amount of
US$29.0 million from RHB Bank Berhad, and an overdraft facility of S$1.0 million from HSBC. In June
2008, we converted S$52.0 million of the amounts due from us to Brizill International into the Brizill Term
Loan. See “— Borrowings — Net Amount Owing to Interested Person”.
The loan facility of US$85.0 million from UOB is in relation to the construction of four vessels. The
respective tranche in relation to each vessel is (a) US$20.0 million which expires on 28 February 2009,
(b) US$20.0 million which expires on 30 April 2009, (c) US$22.5 million which expires on 30 September
2009 and, (d) US$22.5 million which expires on 31 December 2009. This facility is secured by a charge over
certain of our foreign currency fixed deposits placed with UOB and an assignment to UOB of the relevant
shipbuilding contracts, sale proceeds and proceeds from builder risk insurance policies. The facility is subject
to the condition that Yaw Chee Siew maintains no less than a 30% interest in our Company. The facility
carries a floating interest rate based on SIBOR plus a margin of 1.75% per annum. The amount utilised under
this facility, as at the Latest Practicable Date was US$56.7 million.
The revolving credit facility of S$20.0 million from RHB Bank Berhad is secured by a personal guarantee
provided by Yaw Chee Siew. This facility carries a floating interest rate based on SIBOR plus a margin of
2.375% per annum. The amount utilised under this facility, as at the Latest Practicable Date was
S$20.0 million.
We have obtained two vessel construction loans in an aggregate amount of US$14.0 million from RHB
Bank Berhad for the construction of two AHTS vessels which will expire on 10 July 2009. These loans can be
converted into term loans of 48 months upon completion of construction of the relevant vessel. We expect the
vessels to be completed by March 2009. We have contracted to sell both of these vessels. We intend to repay
each of these construction loans upon delivery of the vessels. This facility is secured by a personal guarantee
provided by Yaw Chee Siew, a mortgage over the vessels, an assignment of the relevant shipbuilding contracts,
insurance proceeds, charter contracts and banker’s guarantees issued by the charterers and a charge over any
operating accounts we may maintain with RHB Bank Berhad for the charter income of the relevant vessel in
the event we do end up chartering either of these vessels. The facility carries a floating interest rate based on
US Dollar LIBOR plus a margin of 2% per annum. The amount utilised under this facility, as at the Latest
Practicable Date was US$8.4 million.
We have obtained two vessel construction loans in an aggregate amount of US$15.0 million from RHB
Bank Berhad for the construction of two maintenance vessels which will expire on 10 July 2009. These loans
can be converted into term loans of 48 months upon completion of construction of the relevant vessel. We
expect the vessels to be completed by June 2009. We intend to retain these vessels for our ship chartering
fleet. This facility is secured by a personal guarantee provided by Yaw Chee Siew, a mortgage over the
vessels, an assignment of the relevant shipbuilding contracts, insurance proceeds, charter contracts and
banker’s guarantees issued by the charterers and a charge over operating accounts maintained with RHB Bank
Berhad for the charter income of the relevant vessels. The facility carries a floating interest rate based on
US Dollar LIBOR plus a margin of 1.75% per annum. The amount utilised under this facility, as at the Latest
Practicable Date was US$7.4 million.
The overdraft banking facility of S$1.0 million from HSBC which is subject to review by 31 May 2009 is
secured by an undertaking given by Yaw Chee Siew who is obliged to provide a personal guarantee in the
event that we are unable to list on the SGX-ST by 30 November 2008. This facility carries a floating interest
rate based on the prevailing prime lending rate of HSBC. The facility is subject to financial covenants that
require us to maintain a minimum consolidated net worth of S$200.0 million after the Offering and a
maximum consolidated gearing ratio of 2.00. This facility has not been utilised as at the Latest Practicable
Date.
We have signed terms sheets for banking facilities from CIMB and IFS Capital in July and June 2008,
respectively. We are in the process of negotiating and finalising the documentation for these facilities and
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