ICBC contributes $150 million to $920 million syndicated loan to finance acquisition of 13 shipping vessels (Linked to Project ID#63524)

On August 8, 2007, the Industrial and Commercial Bank of China entered into a syndicated reducing revolving credit facility with Seaspan Corporation (a company that is incorporated under the laws of the Republic of the Marshall Islands). The syndicated facility is up to USD 920 million, and the commitment of ICBC is USD 150 million. Other members of the lending syndicate are DnB NOR BANK ASA ($320 million), CREDIT SUISSE ($150 million), CEXIM ($150 million) and Sumitomo Mitsui Banking Corp. ($150 million). The purpose of the loan is to finance the cost of 13 vessels built by Chinese companies. The vessels are eight 8500 TEU vessel (COSCON Vessels, Vessel one to eight, built by Hyundai Heavy Industries Co. Ltd), three 4250 TEU vessels (CSAV Vessels, Vessel 9 to 12, built by Jiangsu New Yangzi Shipbuilding Co., Ltd), and two 2500 TEU vessel (K-Line Vessel, built by Jiangsu Yangzijiang Shipbuilding Co., Ltd). The interest of the loan is the sum of margin (0.5% per annum) and LIBOR rate (calculated based on the 2007 August 6-month LIBOR rate 5.376%), summed at 5.867%. The commitment commission is calculated at the rate of 0.20% per annum on the undrawn, uncanceled amount of the loans together, throughout the availability period defined by the agreement. It must be paid on each loan on the last day of each term. The facility will be proportionately reduced to the extent that not all vessels are delivered to the company by June 30, 2011. Commencing on the earlier of 36 months after the delivery date of the last vessel and June 30, 2014, the facility will reduce by eighteen consecutive semi-annual reductions in the amounts and on the dates set out in a schedule to the agreement, and on each such date, the company must prepay the amount of the outstanding loan that exceeds the amount of the reduced facility. The outstanding loans under the facility must be paid in full by the final maturity date. The final maturity date of the facility is the earlier of the 12th anniversary of the latest delivery date of the vessel and December 31, 2022. As of December 31, 2007, Seaspan Corporation had drawn $336.6 million of the total $920 million credit facility. The breakdown of this disbursement is unknown. The project status is implementation. This project is linked to project #63524, the commitment of $150 million from China Eximbank.

Additional details

1. The revolving credit facility agreement can be accessed in its entirety via https://www.dropbox.com/s/9vlmv9g6t7peg9n/AGREEMENT%20DATED%208%20AUGUST%2C%202007%20US%24920%2C000%2C000%20REDUCING%20REVOLVING%20CREDIT%20FACILITY%20for%20SEASPAN.pdf?dl=0. 2. This project should not be confused with Project ID#63519, which captures a $150 million revolving credit facility from ICBC in December 2007.

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