The Singapore office of Watson, Farley & Williams LLP (“WFW”) advised Credit Agricole Asia Shipfinance Limited, the agent for Credit Agricole Corporate and Investment Bank, as senior lender, and The Korea Development Bank, as junior lender, in relation to a US$78,000,000 pre and post delivery financing to two Panamanian single purpose companies established under the Korean “Lets Together Shipping Fund” structure for the acquisition of two 115,000 DWT bulkcarriers.
The ships are being constructed at New Times Shipbuilding Co. Ltd. in the People’s Republic of China and, upon delivery, will be bareboat chartered to Hanjin Shipping Co., Ltd. One ship will be subsequently chartered under a consecutive voyage charter to Korea South-East Power Co., Ltd and the other ship will be subsequently chartered under a consecutive voyage charter to Korea Western Power Co., Ltd.
The acquisition of the ships was also funded by bonds issued by the borrowers to a Korean investment trust. The bondholders’ debt was subordinated to the senior and junior lenders’ debt under the financing but the security package provided by the borrowers (including ship mortgages) was shared between the lenders and the bondholders.
The WFW team was led by partner Madeline Leong who was assisted by Lee Chien Herr and Valerie Lee.
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