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Seaspan Closes $500MM Accordion, Increasing Portfolio Financing Program to $1.5B

September 19, 2019, 08:33 AM
Filed Under: Industry News

Seaspan Corporation (SSW) announced the closing of a $500 million increase to its portfolio financing program. The Program initially closed on May 15, 2019 with a total capacity of $1.0 billion , and subsequent to closing of the Accordion, has a total capacity of $1.5 billion.

Net proceeds from the Program are intended to be used to repay five secured credit facilities, for general corporate purposes, and may be used in part to finance the acquisition of vessels. The expanded Program will be comprised of a $300 million revolving credit facility ("RCF"), increased from $200 million , and a $1.2 billion term loan facility ("TLA"), increased from $800 million . The TLA is expected to be fully utilized. There is expected to be undrawn committed capacity remaining under the RCF, which will provide incremental corporate liquidity. The expanded Program is expected to consist of a portfolio of 41 vessels, which may change over time as vessels are added or removed.

Ryan Courson , Chief Financial Officer said, "I am pleased to announce the closing of this expanded Program, which represents a continued improvement to our capital structure and corporate flexibility. 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."

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