Seaspan Orders Five Containerships

Shipowner Seaspan Corporation said it has entered into purchase orders to build five 12,200 TEU containerships. Upon completion and delivery, all five vessels will commence long-term charters with a global liner company and are subject to vessel purchase obligations at the conclusion of the charters.

Seaspan, a wholly owned subsidiary of Atlas Corp, said the newbuild vessels are to be financed from additional borrowings as well as cash on hand. This transaction is expected to add approximately $910 million of contracted cash flows over the charter period.

Bing Chen, Chairman, President and Chief Executive Officer of Seaspan, commented, "Combining our disciplined capital allocation, creative customer partnerships and quality growth strategies, we are excited to announce agreements for five newbuild 12,200 TEU vessels backed by long-term charter with a long-standing customer. Executing a discreet newbuild opportunity to fulfil customer needs and achieve targeted returns is a win-win result. Together, with our valuable customer, we were able to develop mutually beneficial business solutions while adding high value vessels to our fleet and expanding our contracted revenue base. Our execution of this transaction demonstrates the innovative solutions we deliver by leveraging our scale and best-in-class fully integrated service platform."