Seaway 7 financing plan includes $300 million revolver

Chicago, Sept. 9 – Seaway 7 ASA unveiled its updated financing plan in an announcement on Friday.

The company expects to need $550 million for its newbuild program for vessels expected to be delivered during 2023 and to enter operations in the first half of 2024.

The company also plans to arrange an additional $100 million for unplanned working capital needs.

The total anticipated $650 million financing requirement will be partially met through a $300 million revolver provided by a syndicate of banks.

It would be available to be drawn on the successful completion of a $200 million underwritten rights issue.

The facility will be guaranteed by Subsea 7 SA.

The final $150 million would be in the form of a shareholder revolving credit facility to be provided by Subsea 7, and drawable only if the $300 million revolver is fully drawn. The $150 million shareholder revolver would be bridge financing that would be replaced by alternative core debt financing before being drawn down.

The debt facilities have been arranged on arms-length terms with a SOFR plus 400 basis points interest rate.

The debt facilities will be fully committed ahead of the rights issue.

Seaway 7’s business is the delivery of fixed offshore wind projects. The company is based in Oslo.

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