The Hong Kong office of shipping law firm Mayer Brown JSM played a pivotal role in formulating the funding and closing arrangements for a US$325m seven-year secured reducing revolving credit facility to PB Vessels Holding Limited, the borrowing entity of Hong Kong-listed Pacific Basin Shipping Limited. The firm acted on behalf of a syndicate of eight international banks, led by an experienced European ship finance bank, and was entrusted by all outgoing mortgagees to arrange the discharge of the existing security documents.
The facility will refinance several of Pacific Basin’s existing credit facilities and raises fresh capital for previously unmortgaged vessels. The facility further increases Pacific Basin Shipping’s funding flexibility and overall amortization profile, with access to long-term committed funding on a revolving basis for the next seven years at a very competitive borrowing cost. The security package involved 50 dry bulk vessels owned by Pacific Basin Group, 41 of which were subject to existing mortgages.
Maggie Cheung, lead partner and Dean Young, senior consultant for Mayer Brown JSM’s team, jointly commented:
“Considering the number of vessels, ship-owning entities and documents required, and the tight deadline to have all loan documentation finalized and signed within two weeks of the formation of the syndicate, the team needed to draw upon its experience and wealth of skills to ensure seamless co-ordination between a complex web of parties and ensure a bespoke funding and closing package that was acceptable to both incoming and outgoing financiers.”
The Mayer Brown JSM team was led by Banking and Finance partner Maggie Cheung, senior consultant Dean Young and senior associate Dora Ying – all based in Hong Kong.