Seaway 7 is to raise $650m through the issuance of new equity and debt, primarily to finance its two new build vessels for the offshore wind market.
The equity capital will be raised through a rights issue fully underwritten by Seaway7’s three largest shareholders to raise gross proceeds of approximately $200m.
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.
As part of Seaway 7’s equity financing and reaffirming its confidence in the long-term outlook for the fixed offshore wind market, parent company Subsea 7 will subscribe to new Seaway 7 shares, representing 72% of the issuance.
This equates to approximately $144m, in line with its current shareholding.
The rights issue has been fully underwritten by Seaway 7’s three largest shareholders (Subsea 7, Songa and Lotus Marine) on a pro rata basis in proportion to their current shareholding.
Subsea 7 will fund this investment from its existing liquidity which, at 30 June 2022, included cash and equivalents of $464m, an undrawn RCF of $700m and an export credit agency facility of $300m.
Subsea 7, Songa and Lotus Marine currently hold 72%, 14.32% and 7.16%% of Seaway 7’s share capital, respectively.