Seaspan to Build Four More

Seaspan Corporation announced that it exercised its option to build four 2500 TEU vessels at Jiangsu Yangzijiang Shipbuilding (YZJ) 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. (CSCL Asia) 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. CSCL Asia is a subsidiary of China Shipping Container Lines Co. Ltd. ("CSCL"), the world's seventh largest liner company. CSCL will guarantee CSCL Asia's performance under the charter parties.

Each new vessel is expected to contribute between $4.4m and $4.8m 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.