Seaspan Extends, Refinances Credit Facility
Company says that move further strengthens Capital Structure.
Seaspan Corporation (SSW) ("Seaspan") announced that it has entered into an agreement to extend and refinance its $1.0 billion credit facility. BNP Paribas Securities Corp. acted as the lead arranger of the amended facility.
Gerry Wang, Chief Executive Officer, Co-Chairman, and Co-Founder of Seaspan, commented, "We appreciate the strong support we continue to receive from leading global banks and are pleased to have successfully refinanced the $1.0 billion facility ahead of the maturity date and under attractive terms. The refinancing provides multiple benefits for Seaspan and its shareholders, as we extended the maturity of the facility and decreased our total debt position, enabling the Company to further strengthen its capital structure. We believe we remain well positioned to continue to capitalize on a compelling acquisition environment, while utilizing our growing asset base and cash flows."
Under the terms of the amended facility and effective January 31, 2014, the maturity date will be extended from May 2015 to May 2019 and the outstanding amount of the facility will be reduced to approximately $435 million and bear interest at market terms. Seaspan intends to fund this payment by drawing amounts under an existing refinancing facility, which will be secured by certain ships currently pledged as collateral under the $1.0 billion facility, and with its substantial existing liquidity. In connection with entering into the amended credit facility, the Company is amending an existing interest rate swap arrangement to more closely correspond to the terms of the amended facility.