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tanker at sea

Allen & Overy and Watson Farley advise on a US$372m syndicated loan agreement and an increase by Hapag-Lloyd of a revolving credit line

2 October 2015

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Allen & Overy LLP has advised Hapag-Lloyd Aktiengesellschaft on the signing of a USD 372m syndicated loan facility with a 12 year term. The company will finance five 10,500 TEU container newbuilds from the new facility. The newbuilds were ordered in April 2015 and are due to be delivered between October 2016 and May 2017. The total investment cost of the order is in the medium range of a three digits million US Dollars amount.

The syndicate was coordinated by Credit Agricole, DNB, HSBC and UniCredit, with the latter also acting as documentation agent, and advised by Watson Farley & Williams LLP.

As the order for the newbuilds was placed with a Korean shipyard, the Korean export credit agencies K-sure and KEXIM agreed with Hapag-LLoyd to provide cover, thereby securing the total investment. The syndicated loan facility is the third financing for Hapag-Lloyd covered by Korean ECAs, and in which Allen & Overy and Watson Farley acted for the respective parties.

In addition, Hapag-Lloyd increased their revolving credit facility, which is made available by another syndicate of lenders and also coordinated by Credit Agricole, DNB, HSBC and Unicredit, from USD 95m to USD 200m. This increase strengthens Hapag-Lloyd’s liquidity reserves at attractive financing conditions. The team of Allen & Overy also advised Hapag-Lloyd on this aspect of the transaction, whilst Watson, Farley & Williams LLP advised the syndicate of lenders.

The Allen & Overy team comprised partner Thomas Neubaum, counsel Bianca Engelmann and associate Dr. Alexander Schilling (all Banking & Finance, Frankfurt).

Hapag-Lloyd was advised in-house by Thomas Mansfeld, Beate Flach and Henning Wiese.

Advisers for the syndicate of banks on the ship financing: Watson Farley & Williams LLP with partner Maren Brandes, senior associate Dr. Tom Hartung and associate Cassia Veit (all Banking & Finance, Frankfurt and Hamburg).

Advisers for the syndicate of banks on the revolving credit facility: Watson Farley & Williams LLP with partner Frederik Lorenzen, senior associate Dr. Tom Hartung and associate Cassia Veit (all Banking & Finance, Frankfurt and Hamburg).