Seaspan on Container Ship Buying Spree
Seaspan Corporation orders 4 newbuild 10,000 TEU container ships and, buys 4 second-hand 4,600 TEU ones.
Seaspan has signed contracts for the construction of four 10,000 TEU class newbuilding containerships, at Jiangsu New Yangzi Shipbuilding Co., Ltd. and Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. in China. The vessels are scheduled for delivery in 2014 and will be constructed using Seaspan's fuel efficient SAVER design. Concurrently with executing the newbuilding contracts, Seaspan signed long term, fixed-rate time charters for these vessels with Mitsui O.S.K. Lines, Ltd. ("MOL").
In connection with this transaction, Seaspan has also agreed to purchase from MOL four 2003-built 4,600 TEU class second hand vessels, for delivery in the second half of 2013 and first quarter of 2014, and has signed short-term fixed-rate time charters for these vessels with MOL.
These four 10,000 TEU class newbuilding containerships and four 4,600 TEU class second hand containerships remain subject to allocation in relation to the right of first refusal agreement with Greater China Intermodal Investments LLC, an investment vehicle established by Seaspan, an affiliate of global alternative asset manager The Carlyle Group, and Blue Water Commerce LLC. Seaspan intends to fund construction of its portion of these eight containerships initially with a portion of the proceeds of its previous Series C and D preferred share offerings and, subsequently over the next few quarters, with debt financing. Seaspan is considering various sources of debt financing to which it has access.
Seaspan provides major shipping lines with outsourcing alternatives to vessel ownership by offering long-term leases on large, modern containerships. Seaspan's managed fleet of its own and third party vessels consists of 89 containerships representing a total capacity of over 600,000 TEU, including 16 newbuild containerships on order scheduled for delivery by the end of 2015.