Seaspan Acquires Two Containerships on Long-Term Charter for $146MM

Seaspan, a wholly-owned subsidiary of Atlas Corp., agreed to purchase two containerships for approximately $146 million in cash.

The purchase of the acquired vessels is expected to be financed from additional borrowings as well as cash on hand. Seaspan expects to take delivery of the acquired vessels in Q3/20, subject to customary closing conditions. The transaction is expected to be immediately accretive to Atlas’ earnings per diluted share and increase long-term contracted revenue by more than $150 million while maintaining a net debt to equity ratio of approximately 1.2×1.

The acquired vessels are two 13,000 TEU vessels built in 2010 and 2011, both of which will operate under long-term charters with a global liner. Pro forma for this acquisition, Seaspan’s global fleet will consist of 125 vessels and approximately 1,049,000 TEU, with total contracted revenue of approximately $4.5 billion and a weighted average remaining lease period of approximately four years1.

“I am extremely proud of our team’s consistent discipline and execution during this unprecedented time,” Bing Chen, chairman, president and CEO of Seaspan, said. “Despite the extreme market conditions, we will have successfully acquired a total of 13 high-quality vessels backed by long-term charters with three different leading global liners over the past year and during the height of COVID-19. This is a true testament to our resilient business model and best-in-class integrated platform, as well as the committed and creative partnerships with our liner customers who trust us as their scalable, reliable, long-term solutions provider.”

“This transaction further demonstrates our patience in allocating capital at the right time, and our ability to source and execute investments to achieve attractive rates of return through economic cycles,” Ryan Courson, CFO of Seaspan, said. “We remain committed to maintaining the strength of our balance sheet, including a focus on maintaining liquidity, which stands today at over $400 million, while continuing our disciplined approach to strategic growth opportunities.”

Atlas is a global asset management company.

Seaspan is an independent owner and operator of containerships with ship management services.

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