rss icon Subscribe
desktop mobile

Seaspan Buys Fleet of 6 Containerships

Image: Seaspan Corporation

Laxman Pai

Hong Kong-headquartered Seaspan Corporation, a major player in independent containership management and ownership, has agreed to acquire a fleet of six containerships for $380 million in cash.

The independent containership lessor said that the purchase of the acquired vessels is expected to be financed from additional borrowings as well as cash on hand.

The closing of the acquisition is expected to occur in December 2019, and is subject to customary closing conditions. Upon closing, the transaction is expected to be immediately accretive to Seaspan's earnings per diluted share.

Subsequent to this acquisition, Seaspan's global fleet approaches one million TEU, with a total pro forma fleet size of approximately 975,000 TEU.

Seaspan continues to be the market leading independent charter owner and operator of containerships, with pro forma market share of approximately 7.7% of the global fleet, as measured by TEU.

The acquired vessels are comprised of three 10,700 TEU vessels built in 2012, two 9,200 TEU vessels built in 2013, and one 9,200 TEU vessel built in 2014. This adds a total of approximately 59,700 TEU. The acquired vessels currently operate under long-term charter with a leading global liner.

Delivery of the six vessels is expected in December 2019. Upon delivery of the acquired vessels, and one vessel previously announced, Seaspan's total fleet will grow to 119 vessels (approximately 975,000 TEU).

Bing Chen, President and Chief Executive Officer of Seaspan, said, "This strategic transaction further demonstrates our core competency of allocating capital in a disciplined manner. Connecting this discipline with creative customer partnerships and proven operational excellence generates sustainable long-term value. This acquisition delivers a win-win outcome for one of our key financing partners, a key customer, and for Seaspan."

Chen added: "Upon delivery of all vessels, we will grow our fleet to 119 vessels, and further cement Seaspan's position as the leading global independent charter owner and operator of containerships. I'm proud of the Seaspan team for consistently leveraging our core competency in creating quality growth in container shipping and beyond. As consolidation continues to play out in the containership space, we're well positioned to capture great opportunities in the second hand market and to pursue attractive new build programs."

Ryan Courson, Chief Financial Officer, said, "Over the last two years, we have demonstrated discipline through our capital allocation process. By focusing first on improving our balance sheet strength, liquidity and financing flexibility, we have positioned ourselves to execute on large scale, accretive transactions."

Courson added: "This fleet acquisition of six high-quality vessels contributes substantial long-term value to our asset portfolio through significant incremental contracted cash flows, increasing Seaspan's minimum future contracted revenue to approximately $4.2 billion. We will continue to remain disciplined in achieving our return objectives while maintaining the strength and flexibility of our balance sheet."

Nov 14, 2019

 

Shipbuilding

First Jones Act SOV Gets ABS Nod

(Image: VARD)

Classification society ABS said it has granted the first Approval in Principle (AIP) to VARD for

Grieg Star Adds Newbuild to Fleet

Star Gaia. Image: Grieg Star

Norwegean shipping company Grieg Star has taken the 64,000 DWT Star Gaia on a long term tariff

Meyer Turku Delivers Costa Smeralda

Image: Costa Cruises

Finish shipbuilder Meyer Turku delivered liquefied natural gas (LNG)-fuelled Costa Smeralda to its

Ship Sales

Ocean Yield Adds LR2 Tanker Trio

Image:  Ocean Yield ASA

Norwegian ship owner and operator Ocean Yield ASA has taken delivery of three long range 2 (LR2)

Eimskip Sells Three Reefer Vessels

Pic: Eimskip

Icelandic container line and a logistics company Eimskip has made an agreement to sell three of

CMA CGM to Raise $2bn Via Selling Terminal, Ships

Pic: CMA CGM

French container shipping giant  CMA CGM plans to sell selected port terminals, ships and other

Maritime Apps