Seaway 7 raising cash to finance newbuild vessels
Both vessels are anticipated to be delivered during 2023 and to enter operations in the first half of 2024.
In addition to the newbuild vessels, the capital expenditure forecast also allows for potential upgrades and new enabling equipment on other vessels within Seaway 7’s fleet as well as usual dry docks, the company said.
The total capital expenditure forecast from the third quarter of 2022 through to the completion of the newbuild program totals $550 million. In addition to funding the above committed and potential capital expenditure, Seaway 7 is arranging an additional $100 million in committed funding capacity to cater for unplanned working capital needs.
The equity capital will be raised through a rights issue fully underwritten by Seaway7’s three largest shareholders, Subsea7, Songa, and Lotus Marine, to raise gross proceeds of approximately $200 million. The proposed rights issue is subject to approval by Seaway7’s shareholders at an extraordinary general meeting expected to be held early in the fourth quarter of 2022.
As part of Seaway7’s equity financing, and reaffirming its confidence in the long-term outlook for the fixed offshore wind market, Subsea 7 will subscribe to new Seaway 7 shares, representing 72 per cent of the issuance, which equates to approximately $144 million, in line with its current shareholding, the parent company said.
The remaining funding will be secured through a $300 million revolving credit facility to be provided by a syndicate of banks, and $150 million through a shareholder revolving credit facility, to be provided by Subsea7, and drawable only if Seaway 7 fully draws upon the $300 million revolving credit facility.