Oslo-listed offshore wind service specialists Seaway 7 is raising $650m through the issuance of new equity and debt, primarily to finance its two newbuild vessels.
The company will raise $200m through a rights issue where its three largest shareholders, Subsea 7 with 72%, Songa with 14% and Lotus Marine with just over 7% of the shares, will maintain their holdings. Subsea 7, for its part, will contribute $144m to the issue.
A $300m revolving credit facility, guaranteed by Subsea 7, will be provided by a syndicate of banks and drawable on the successful completion of the contemplated rights issue. An additional $150m revolving credit will also be provided by Subsea 7 and drawable only if Seaway 7 fully draws upon the $300m facility.
Seaway 7 currently has two vessels under construction, Seaway Alfa Lift and Seaway Ventus, representing the primary capital expenditure planned for the coming years. Both vessels should deliver during 2023 and enter operations in the first half of 2024.
In addition to the newbuild vessels, the capital expenditure forecast also allows for potential upgrades and new enabling equipment on other vessels within the fleet, as well as usual dry docks and unplanned working capital needs, the company said.
The proposed rights issue is subject to approval by Seaway 7’s shareholders at an EGM expected to be held early in the fourth quarter of 2022.
