Seaspan Corporation (“Seaspan”), a wholly owned subsidiary of Atlas Corp. (“Atlas”) (NYSE: ATCO) announces the delivery of the first of four vessels to be acquired pursuant to a previously announced acquisition agreement (the “Acquired Vessels”). In connection with the delivery, Seaspan has closed one of four innovative finance lease transactions (the “Financings”) with total proceeds of approximately $340 million, in partnership with a leading financial institution. At the conclusion of the initial 10-year term, Seaspan is obligated to purchase the vessels at a predetermined price. The closing of the remaining three Financings are with the same financial partner and are subject to identical terms and conditions. In addition, these vessels have pre-determined delivery schedules according to our vessel sale and purchase agreement.
Highlights of the Facilities
- 10-year tenor extends and diversifies Seaspan’s maturity profile
- Innovative structure provides collateral flexibility
- Attractive total cost of debt on long-term committed capital
Bing Chen, President & CEO of Atlas, commented, “Despite the current extraordinary market condition, Seaspan not only maintains access to the global capital markets, but also continues to develop our innovative and mutually beneficial solutions with our financing partners. As the largest and the best-in-class containership owner and operator, our unique business model with predictable cash flow is the best testament to our financial resilience in this turbulent market. I am proud of our team’s consistent execution in delivering quality growth and investing in our integrated platform, which is supported by $4.6 billion of contracted revenue, 4.2 years of average remaining contract life, and creative partnerships with our top global liners.”
Ryan Courson, CFO of Atlas, commented, “Increasing Atlas’ access to capital is a critical element of our long-term strategy. This innovative, long-term, and flexible financing program supports Seaspan’s high quality asset portfolio while improving Atlas’ long-term credit profile. Our strong financing partnerships and diverse access to the capital markets provides our customers with confidence in Atlas’ execution capabilities.”
