Seaway 7 plans USD-650m debt, equity issue to fund two new-build vessels

Offshore wind contractor Seaway 7 ASA (OSL:SEAW7) has unveiled plans to raise USD 650 million (EUR 640m) mainly to fund its two new-build vessels, Seaway Alfa Lift and Seaway Ventus, which are currently under construction and are due to be delivered during 2023.

The financing plans include a USD-200-million rights issue complemented with debt -- a USD-300-million revolving credit facility to be provided by a syndicate of banks and a USD-150-million shareholder revolving credit facility.

The rights issue is underwritten by the company's three largest shareholders, Subsea 7 SA (OSL:SUBC), Songa and Lotus Marine, which currently own 72%, 14.32% and 7.16%, respectively.

Subsea7 said its participation in the share issue, equivalent to some USD 144 million, confirms its confidence in the long-term outlook for the fixed offshore wind market. Seaway 7 said it is seeing strong demand for its services on the back of an energy transition and energy security drive.

The rights issue will need to be approved by Seaway 7’s shareholders at a meeting that will probably take place early in the fourth quarter of 2022.

(USD 1 = EUR 0.985)

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