3 . SEACOSCO ACQUISITION On May 31, 2020, SEACOR Offshore Asia LLC (SEACOR Offshore Asia), an indirect wholly-owned subsidiary of SEACOR Marine, entered into a Sale and Purchase Agreement (SEACOSCO SPA) with China Shipping Fan Tai Limited, a company incorporated under the laws of the British Virgin Islands, and China Shipping Industry (Hong Kong) Co., Limited, a company incorporated under the laws of the Hong Kong Special Administrative Region (together, the SEACOSCO Sellers), pursuant to which SEACOR Offshore Asia agreed to acquire the 50% membership interest in SEACOSCO Offshore LLC (such remaining interest, the SEACOSCO Interests) held by the SEACOSCO Sellers that the Company did not already own. On June 30, 2020, SEACOR Offshore Asia completed the acquisition of the SEACOSCO Interests from the SEACOSCO Sellers (the SEACOSCO Acquisition). As a result of the completion of the acquisition, the Company owns 100% of the membership interests in SEACOSCO Offshore LLC. On July 14, 2020, the name of SEACOSCO Offshore LLC was changed to SEACOR Offshore Delta LLC (SEACOR Offshore Delta). The price payable by SEACOR Offshore Asia for the membership interests was $28.2 million (the SEACOSCO Purchase Price), $8.4 million of which was paid to the Sellers at the closing of the transaction, with annual installment payments of $1.0 million, $2.5 million and $2.5 million payable in the first, second and third year after the signing date (the SEACOSCO SPA Signing Date), respectively, and the remaining $13.7 million due four years after such signing date. The deferred portion of the SEACOSCO Purchase Price accrues interest at a fixed rate of 1.5%, 7.0%, 7.5% and 8.0% for the first through fourth years after the SEACOSCO SPA Signing Date, respectively. SEACOR Offshore Delta is the owner of eight platform supply vessels (PSVs) built by COSCO Shipping Heavy Industry (Guangdong) Co., Ltd. (the COSCO (Guangdong) Shipyard and such PSVs, the SEACOR Delta PSVs) . The SEACOSCO Sellers obtained a second lien mortgage on the SEACOR Delta PSVs to secure the payment of the deferred portion of the SEACOSCO Purchase Price, and SEACOR Marine provided a limited deficiency guarantee solely with respect to the short-fall in vessel collateral value, if any, in the event the SEACOSCO Sellers exercise their remedies under the mortgages. The SEACOR Delta PSVs were initially acquired by vessel owning subsidiaries (SEACOR Delta SPVs) of SEACOR Offshore Delta pursuant to existing deferred purchase agreements with the COSCO (Guangdong) Shipyard (Guangdong DPAs) under which an aggregate of approximately $100.8 million was outstanding as of June 30, 2020 (the SEACOR Delta Shipyard Financing). As of September 30, 2020, $97.2 million was outstanding. The Guangdong DPAs provide for amortization of the purchase price for each vessel over a period of 10 years from delivery bearing floating interest rate of three-month LIBOR plus 4.0%. SEACOR Offshore Delta has taken delivery of all eight SEACOR Delta PSVs, seven with a 2018 or 2019 year of build, and one with a 2020 year of build. The payment obligations of the SEACOR Delta SPVs under the Guangdong DPAs for each vessel is secured by a first lien mortgage on the vessel and a pledge of the SEACOR Delta SPVs equity, and SEACOR Marine provided a limited deficiency guarantee solely with respect to the short-fall in vessel collateral value, if any, in the event the COSCO (Guangdong) Shipyard exercises its remedies under the mortgages. Purchase Price Allocation. The eight SEACOR Delta PSVs are all based on plans from the same designer, have a similar age of construction (2018-2020) and were constructed at the same shipyard. Two of the vessels are high specification diesel/electric powered PSVs. The other six vessels are all sister vessels with identical specifications. These six vessels are high specification diesel/electric/hybrid powered vessels. In accordance with ASU No. 2017-01-Business Combinations (Topic 805): Clarifying the Definition of a Business, due to the fact that the assets acquired have substantially all of their fair value concentrated as a group of similar assets, this acquisition qualified as an asset purchase. The allocation of the purchase price for the Companys acquired assets for the six months ended June 30 was as follows (in thousands): Assets Acquired (In Thousands): June 30, 2020 Current Assets 7,700 Fixed Assets 142,282 Current Liabilities (23,929 ) Book Value of Debt Acquired (100,759 ) Discount on Debt Acquired 25,190 Fair Value of Debt Acquired (75,569 ) Total Cost Basis for Purchase 50,484 Purchase Price $ (28,150 ) Acquisition costs (112 ) Equity Investment In SEACOR Offshore Delta (f/k/a SEACOSCO) (22,222 ) (50,484 )