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Seaspan announces term sheet for investment in the restructuring of Swiber Holdings

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LNG Industry,

Seaspan Corp. has announced that it has entered into a binding term sheet for a potential investment of up to US$200 million in the restructured Swiber Holdings Ltd.

Swiber is a publicly traded Singaporean offshore engineering, procurement and construction business that owns five maritime vessels. According to Seaspan, the investment is expected to be funded in two tranches: US$20 million upon closing in exchange for an 80% economic interest in the restructured Swiber Group; and an incremental US$180 million to be invested in a US$1 billion LNG-to-power project in Vietnam under development, in exchange for economic interests in the project.

Bing Chen, Seaspan President and Chief Executive Officer, said: “We are excited to partner with Swiber. Together, with Swiber's operational and engineering capabilities, Seaspan's leading maritime asset management platform, and our Chairman David Sokol's energy related experience, we will unlock substantial value.”

In the statement, Seaspan claims that it is intending to fund the investment with cash on hand. The closing of the first tranche of the investment is subject to confirmatory due diligence, entering into definitive agreements, the emergence of Swiber from its judicial management process in Singapore, the approval of Swiber’s shareholders and creditors, Singapore regulatory approvals and other conditions customary for transactions of this nature. According to the statement, the first tranche is expected to close in the first part of 2019, while the closing of the second tranche remains subject to a number of conditions.

Chen added: “Concurrently, we will continue to invest in and improve operations of our existing containership leasing business to provide best-in-class service to our customers. I would like to congratulate our Special Projects team, led by Matthew Tinari, on structuring and executing this opportunistic potential investment.”

White & Case LLP is acting as counsel to Seaspan in connection with the proposed investment.

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