Company: TDDWW
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001437749-25-005487
Chunk: 934

Company: TIDEWATER INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 934
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 the Sellers), pursuant to which we agreed to acquire from the Sellers (the Solstad Acquisition): (i) 37 platform supply vessels owned by the Sellers (the Solstad Vessels); and (ii) the charter parties governing certain of the Solstad Vessels. On  July 5, 2023, we completed the Solstad Acquisition for an aggregate cash purchase price of approximately $594.2 million, consisting of the $577.0 million base purchase price plus an initial $3.0 million purchase price adjustment; $3.2 million for working capital items comprised of fuel and lubricants; and $11.0 million in estimated transaction costs, consisting primarily of advisory and legal fees. The purchase price was funded through a combination of cash on hand and net proceeds from both the Senior Secured Term Loan and the 10.375% Senior Unsecured Notes due  July 2028. See “Note (4) Debt” for additional disclosure on these debt instruments.
    
   We have determined that, under the provisions of FASB Accounting Standard Codification (ASC) 805, substantially all of the fair value of the gross assets acquired is concentrated in similar identifiable assets and accordingly, the Solstad Acquisition is considered an asset acquisition. As a result, the assets acquired and liabilities assumed are measured at cost, which consists of the amount of cash paid and direct transaction costs. The cost of a group of assets acquired in an asset acquisition are allocated to the individual assets acquired or liabilities assumed based on their relative fair values and does not give rise to goodwill.
    
   As of  July 5, 2023, the cost of the asset acquisition was allocated to the following individual assets acquired and liabilities assumed based on their relative fair values.

     (In Thousands)     

   Estimated Fair Value  
     
 Marine operating supplies  $1,891 
 Net properties and equipment   601,000 
 Total assets   602,891 

 Other current liabilities (A)   8,600 
 Other liabilities (A)   1,400 
 Total liabilities   10,000 
     
 Net assets acquired  $592,891 
     
 Costs and expenses     
 Vessel operating costs (B)   1,300 
     
 Purchase consideration  $594,191 

    (A)  Current and long-term liabilities related to certain existing charter contracts accompanying