Government of Québec joins JP Morgan, Anchorage Capital in financing syndicate for Resolve Class Naval Support Ship
Federal Fleet Services and Davie Shipbuilding announced July 6 that, as part of its Maritime Strategy Fund through the Quebec Shipbuilding Support Program, the government of Québec joins JP Morgan and Anchorage Capital as part of the financing syndicate in the first Resolve Class Naval Support Ship, M/V Asterix. The government of Quebec is investing C$188 million alongside another C$300 million from investment banks.
Spencer Fraser, CEO of Federal Fleet Services, said: “We are very pleased to have the Government of Québec join our financing syndicate alongside our partners JP Morgan and Anchorage Capital, thereby reaffirming their commitment to the marine industry and to Canada’s largest shipbuilder. This is a win-win transaction for Davie and the Government of Québec. It frees up some of the cash which was invested into building the ship and will be exclusively reinvested in the shipyard. It also allows the government to make a profitable, risk-adjusted investment to bolster the province’s marine industry which will be fully repaid.”
James Davies, President of Davie Shipbuilding added: “The Resolve Class Naval Support Ship has been a hugely successful program. After delivering on time and to budget, Federal Fleet Services is now operating the ship on a long-term lease to the Royal Canadian Navy. With a stable cash flow coming in from the lease to the Royal Canadian Navy, we have been able to free up the cash used during the construction in order to continue investing in the shipyard as we take on imminent, new projects such as the construction of icebreakers, ferries and the repair and refit of the naval fleet. It is a testament to the vision, forethought and competence of the province that the Shipbuilding Support Program has been designed, implemented and successfully deployed. This low-risk investment program allows Québec to propel its maritime industrial cluster back to the forefront of the shipbuilding industry in the Western Hemisphere. We are proud to be part of this success and incredible achievement by the province.”