Seaspan Exercises Option for Four New Vessels

Friday, July 07, 2006
Seaspan Corporation exercised its option to build four 2500 TEU vessels at Jiangsu Yangzijiang Shipbuilding in China. This option was part of the February transaction with YZJ that included the firm order of four 2500 vessels and options to build eight more at the same price. These new orders will increase the company's total fleet to 33 vessels when the vessels are delivered between May and August 2009. The total delivered cost is expected to be approximately $44.7m per vessel, subject to certain pre-delivery expenses remaining at budgeted levels. Seaspan also announced that it has arranged simultaneous 12-year charter agreements for these four vessels with China Shipping Container Lines (Asia) Co. Ltd. at an initial rate of $16,750 per day, increasing to $16,900 per day after six years. These are the same terms and conditions as the charters for the first four vessels in the series. Each new vessel is expected to contribute between $4.4m and $4.8 m in incremental EBITDA per annum upon delivery. For this purpose, EBITDA shall mean net earnings before interest, undrawn credit facility fees, taxes, depreciation and amortization of deferred financing fees. This should result in an increase in distributable cash when the vessels are delivered and operating. The remaining group of four 2500 TEU option vessels are priced at the same level as the eight already ordered. The option to build the remaining four vessels in the series will only be exercised if acceptable long-term charters are arranged. Seaspan has until September 30, 2006 to exercise this final option. Seaspan Management Services Limited will supervise the construction of the new vessels and operate the ships for Seaspan. YZJ, which is building the vessels, is located on the Yangtze River in the Jiangsu Province of China.
Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Newport News Shipbuilding Hosts Sen. Inhofe

Huntington Ingalls Industries (HII) today hosted Sen. James M. Inhofe, R-Okla., for a tour of the company's Newport News Shipbuilding division.   The senator,

Naval Authorities Rely on OSE Separators from GEA

The trend of modernizing ships and fitting them with more efficient separator systems, which has been noticeable since 2014 particularly in Europe and North America,

Italian Navy Takes Back Fishing Boat Seized Near Libya

The Italian navy took back control on Friday of a Sicilian fishing boat that had been seized overnight by unknown assailants near the Libyan coast, the defence ministry said.

Vessels

Solving the LNG Propulsion Puzzle

The last piece of the LNG infrastructure puzzle, in the form of North America’s first LNG bunker barge, falls into place at Conrad’s Orange, Texas Shipyard. With

Hands Across the Water

U.S. firms leverage Netherlands-based Damen Shipyard’s vessel designs and technical support. For nearly 40 years, Damen Shipyards Group in the Netherlands has

Royal IHC Launches Sister Pipelay Vessels

Netherlands-based Royal IHC today named and launched new pipelaying sister vessels, Sapura Jade and Sapura Ônix, in ceremonies at the company’s shipyard in Krimpen aan den IJssel, The Netherlands.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Salvage Ship Repair Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2965 sec (3 req/sec)