Conyers advised BW Offshore Limited (BWO:Oslo) (“BW Offshore”) on the US$275 million equity investment (“the Equity Investment”) by the financial leasing firm, ICBC Financial Leasing Co., Ltd. (“ICBCL”) in BW Catcher Limited (“BW Catcher”).
BW Offshore closed the agreement in connection with the Equity Investment on 14 November 2017, with a nominee of ICBCL, whereby such nominee became an equity partner in BW Catcher, which owns the BW Catcher FPSO currently under a lease contract with Premier Oil.
BW Catcher has issued preference shares with a preferential dividend right to ICBCL, for an aggregate subscription price of US$275 million. BW Catcher plans to redeem the preference shares in full over an estimated term of 12 years. The aggregate redemption and dividend payments on the preference shares are estimated to reflect approximately 25-30% of the estimated free cash flow after debt servicing in the BW Catcher contract over a similar term. The net proceeds from the issue of the preference shares will be used for general corporate purposes.
Director Sophia Greaves, and Associate Jennifer Panchaud of the Bermuda office worked alongside Wikborg Rein Advokatfirma AS and Freshfields Bruckhaus Deringer on the matter.