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Seaway 7 looks for $650m financing to complete wind vessels

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Seaway 7 (OSLO:SEAW7) has set out new financial plans which include a $200 million rights issue, as it looks to shore up capital to complete construction of two offshore wind vessels.

The Oslo-listed firm, part of the Subsea 7 group, said it planned to secure $650 million in financing commitments to cover its working capital needs over the coming years.

The company was formed last year via the combination of Subsea 7’s renewables division with Norwegian offshore vessel group OHT.

It has two significant newbuild vessels under construction – Seaway Alfa Lift and Seaway Ventus – which it said would represent the main avenue for capital expenditure in the coming years.

Alfa Lift is a 148-metre semi-submersible offshore wind foundation installation vessel, while Ventus is a self-propelled jack-up aimed at installing turbines and XL monopile foundations.

Both vessels are anticipated to be delivered during 2023 and to enter operations in the first half of 2024.

Alongside these newbuild vessels, the company’s expenditure forecast also allows for potential upgrades and new equipment on other vessels within its fleet.

All told, it expects capital expenditure from Q3 2022 through to the completion of the newbuild program to total some $550m.

In addition to funding these commitments, Seaway 7 said it would arrange an additional $100m in funding capacity to cater for any unplanned capital needs, bringing total funding to $650m.

To raise this sum, the company said it had secured commitments from its three largest shareholders – Subsea7 (72%), Songa (14.32%) and Lotus Marine (7.16%) – to undertake a fully underwritten rights issue for approximately $200m.

A syndicate of banks will also provide a $300m revolving credit facility, drawable on the successful completion of the rights issue and guaranteed by Subsea.

A further $150m shareholder revolving credit facility will be provided by Subsea7, if the firm fully draws upon the above revolving credit facility. Seaway 7 said it expects that this bridge finance facility will be replaced by alternative core debt financing prior to being drawn down.

The net proceeds from the rights issue will be used to fund the newbuild vessels, and are subject to approval by shareholders at an extraordinary general meeting to be held in early Q4 2022.


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