Seaspan Announces Order Option for Five 7,000 TEU Dual-Fuel LNG Containership Newbuilds
LONDON, UK, Sept. 1, 2021 /CNW/ - Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE: ATCO), today announced that ZIM Integrated Shipping Services Ltd. ("ZIM") (NYSE: ZIM) has exercised its option to enter into long-term charters of five ultra-modern 7,000 TEU dual-fuel liquefied natural gas ("LNG") containership newbuilds (the "LNG Containerships"). ZIM was granted this option in connection with the agreement to charter ten vessels of the same class announced on July 6th, 2021. Seaspan will enter into agreements with a major shipyard to construct the LNG Containerships, which are anticipated to be delivered during the fourth quarter of 2024. The LNG Containerships are anticipated to be financed from existing liquidity, cash flow from operations, and additional borrowings.
Transaction Highlights
- Five modern 7,000 TEU dual-fuel LNG vessels
- Aggregate purchase price of approximately $530 million
- 12-year minimum charters totaling approximately $900 million of gross contracted cash flow
Management Commentary
Bing Chen, Chairman, President and CEO of Seaspan, commented, "We continue to create value for our customers through differentiated services, operational excellence, and the ability to implement solutions tailored to our customers' changing requirements. The exercise of this option, with valuable vessel deliveries at competitive pricing, highlights the continued quality growth for both companies. The advanced design of these vessels demonstrates Seaspan and ZIM's leadership in ESG initiatives and a more sustainable industry. With strong customer interest in this vessel size, we consider this category to be the natural successor to the aging global fleet of conventional vessels between 4,000 and 9,000 TEU."
Since December 2020, and including this announcement, Seaspan has announced 60 newbuild vessel orders and the acquisition of four second-hand vessels, all four of which have since been delivered.
The chart below summarizes newbuild vessels which Seaspan has announced but has not yet received delivery of:
Vessel Class |
Newbuilds |
Total TEU |
7,000 TEU LNG |
15 |
105,000 |
12,000 TEU |
6 |
72,000 |
12,200 TEU |
5 |
61,000 |
15,000 TEU |
16 |
240,000 |
15,000 TEU LNG |
10 |
150,000 |
15,500 TEU |
6 |
93,000 |
24,000 TEU |
2 |
48,000 |
Total |
60 |
769,000 |
About Atlas
Atlas is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience. We target long-term, risk adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. Our two portfolio companies, Seaspan Corporation and APR Energy Ltd. are unique, industry-leading operating platforms in the global maritime and energy spaces, respectively. For more information visit atlascorporation.com.
About Seaspan
Seaspan is a leading independent owner and operator of containerships. We charter our vessels primarily pursuant to long-term, fixed-rate time charters to the world's largest container shipping liners. Seaspan's operational fleet consists of 131 vessels with a total capacity of 1,120,200 TEU. We also have 60 vessels under construction, including the five announced herein, increasing total capacity to 1,889,200 TEU, on a fully delivered basis. For more information visit seaspancorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including the expected benefits of the newbuild orders to Atlas's financial condition and results from operations. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", "projects", "forecasts", "will", "may", "potential", "should", and similar expressions are forward-looking statements. These forward-looking statements, reflect management's current expectations only as of the date of this release. As a result, you are cautioned not to rely on any forward-looking statements. Although these statements are based upon assumptions that we believe to be reasonable based upon available information, they are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to the factors detailed from time to time in our periodic reports and filings with the SEC, including Atlas's Annual Report on Form 20-F for the year ended December 31, 2020, filed with the SEC on March 19, 2021. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of any of our securities.
SOURCE Atlas Corp.
Investor Inquiries: Robert Weiner, Investor Relations, Atlas Corp., Tel. +1-904-345-4939, Email: [email protected]; Media Inquiries: Alex Kilpatrick, Media Relations, Atlas Corp. Tel. +1-904-345-4939, Email: [email protected]
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