Seaway 7 outlines newbuild funding plans

4C Offshore | Tom Russell
By: 12/09/2022 Seaway 7

Seaway 7 announced plans to raise $650 million committed funding to complete a new build vessel programme and support the future anticipated working capital needs of the company.

The company's anticipated peak financing requirement of $650 million is planned to be met by a fully underwritten rights issue to raise gross proceeds of approximately $200 million. It has received commitments from the Company's three largest shareholders to fully underwrite the contemplated rights issue in proportion to their current shareholdings in Seaway 7.

Seaway 7 also announced a $300 million Revolving Credit Facility to be provided by a syndicate of banks.  Such committed debt facility from a syndicate of banks would be drawable on the successful completion of the contemplated rights issue.  This facility will be guaranteed by Subsea 7 S.A. (Subsea7) and is priced on an arms-length basis.

Furthermore, a $150 million Shareholder Revolving Credit Facility, is to be provided by Subsea7, and drawable only if Seaway 7 fully draws upon the $300 million Revolving Credit Facility. The Company expects that this bridge finance facility will be replaced by alternative core debt financing prior to being drawn down.

The proposed Rights Issue is subject to approval by the Company's shareholders at an extraordinary general meeting expected to be held early Q4 2022.

The Company currently has two newbuild vessels under construction,
Seaway Alfa Lift and Seaway Ventus representing the primary capital expenditure planned for the coming years. Both vessels are anticipated to be delivered during 2023 and to enter operations in the first half of 2024. Delivery payments on these vessels are anticipated to represent the peak funding need of the Company.

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