Hong Kong-based charter owner and boxship operator Seaspan sealed today a USD 500 million financing deal, bringing its financing program to USD 1.5 billion.
The company said it would use the net proceeds to repay five secured credit facilities, as well as for future vessel acquisitions.
The expanded financing program will be comprised of a USD 300 million revolving credit facility, increased from USD 200 million, and a USD 1.2 billion term loan facility, increased from USD 800 million, which is expected to be fully utilized.
Seaspan added that the expanded program is expected to consist of a portfolio of 41 vessels, which may change over time as vessels are added or removed.
“The program was well received by our lending partners, and was substantially oversubscribed. We have already begun to realize strategic, as well as financial benefits from the Program, and we expect it to meaningfully enhance Seaspan’s ability to achieve its strategic objectives going forward,” Ryan Courson, Chief Financial Officer said commenting on the deal.
The sealing of the latest financing deal, “the accordion”, comes on the back of a program closed in May this year when the company secured USD 1 billion in financing capacity. At the time the company hinted that it might bring its program up to USD 2 billion through additional commitments, loans and/or issuing private placement notes.
Seaspan’s operating fleet consists of 112 containerships with a total capacity of over 900,000 TEU, with the average age of approximately seven years.