Seaspan to cut facility size to $435 million, extend to 2019 via BNP

By Susanna Moon

Chicago, Dec. 30 - Seaspan Corp. said it entered into an agreement to extend and refinance its $1 billion credit facility with BNP Paribas Securities Corp. as the lead arranger.

Under the amended terms, effective Jan. 31, the maturity date will be extended to May 2019 from May 2015 and the outstanding amount of the facility will be reduced to about $435 million and bear interest at market terms, according to a company press release.

Seaspan said it plans to fund the payment by drawing under a refinancing facility, which will be secured by ships pledged as collateral under the $1 billion facility, and with its substantial liquidity.

In connection with the amended facility, the company is amending an existing interest rate swap arrangement to more closely correspond to the terms of the amended facility.

"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," Gerry Wang, chief executive officer, co-chairman and co-founder of Seaspan, said in the press release.

"We believe we remain well positioned to continue to capitalize on a compelling acquisition environment, while utilizing our growing asset base and cash flows."

Seaspan is a Hong Kong-based containership company.

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