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Blank Rome Counsels Seaspan Corporation in Closing of Innovative $1B Portfolio Financing Program

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A Blank Rome team counseled Seaspan Corporation, an independent charter owner and operator of containerships with industry-leading ship management services, during the development and closing of its innovative one-billion-dollar senior secured financing program guaranteed by Seaspan, which consists of a $200 million revolving credit facility and an $800 million term loan facility, with the ability to increase the facility to two billion dollars. The transaction, which Seaspan notes as a “first-of-its-kind financing in the shipping space,” closed on May 15, 2019.

The program will initially consist of a portfolio of 36 vessels and provides Seaspan with the flexibility to add, substitute, and remove vessels during the term, subject to a borrowing base, portfolio concentration limits, absence of defaults, and compliance with financial covenants. Net proceeds will be used to repay 12 secured credit facilities, for general corporate purposes, and may be used in part to finance the acquisition of vessels over time. The program involved leading global financial banks and institutions serving as advisors and lenders.

To learn more about this program, please read Seaspan’s issued press release, Seaspan Announces Closing of Innovative $1 Billion Portfolio Financing Program (May 15, 2019).

The Blank Rome team was led by Scott Smith and included Tony Salgado, Christopher Manion and Dana Merkel.