The multi-tranche loan facility will part finance seven 14,000 teu and five 18,000 teu boxships ordered at Hyundai Heavy Industries (HHI) and is part of a larger $1.74bn in debt financing.
The syndicated-loan financing will cover 75% of the cost of the newbuildings and comprises of a $439m commercial bank tranche, a $300m equivalent to Saudi Riyal tranche and a $512m tranche with K-Sure. All three tranches have to be fully repaid 12 years from drawdown.
Deutsche Bank and Qatar National Bank acted as joint lead underwriters and lead bookrunners for the facility.
“In a capital intensive industry like container shipping, it is critical to invest in new assets to keep up with market growth and to expand,” said Basil Al-Zaid, UASC cfo. “The unwavering commitment of our shareholders as well as the excellent support from our regional and international lenders has been fundamental to the successful closing of this facility. The oversubscription to the facility by 2.2 times also shows the financial strength of UASC.”
UASC has a total of 17 boxships on order from HHI with 10 firm contracts and seven options.
The company said $493m in debt financing for the remaining five vessels is expected to be closed shortly under separate facilities.
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