US-based marine service provider Seaspan has purchased two newbuilding 11,000 twenty foot equivalent unit (TEU) vessels from Greater China Intermodal Investments (GCI) for $195.6m.
Once delivered, the new vessels will enter into 17-year bareboat charters with MSC Mediterranean Shipping Company (MSC), which will buy the vessels at the end of their respective charters.
In the first full year of operation, the new vessels will collectively generate annual cash receipts of around $17.7m.
The newly acquired vessels are sister ships to the three vessels Seaspan has scheduled for delivery in 2017 and chartered to MSC.
Seaspan noted that it would assume around $88.1m in remaining instalments under the shipbuilding contracts for these vessels as partial consideration for the purchase price.
The balance under Seaspan’s demand loan with GCI will be reduced by $107.5m to fund the remaining purchase price of the vessels.
Seaspan has also entered into a 17-year lease financing arrangement with an undisclosed Asian leasing company with total commitments of nearly $168m to partially fund the acquisition, construction and delivery of the two new vessels.
Including this financing, Seaspan has accessed around $1.2bn in loan, lease and equity financings from Asian-based sources in the last year.
GCI is a joint venture among Seaspan, The Carlyle Group, Blue Water Commerce and Tiger Management.
The latest deal has been approved by an independent Governance and Conflicts Committee formed by Seaspan’s board of directors.
In May this year, Seaspan had taken delivery of a 14,000 TEU containership, YM Width, which was constructed at Taiwan’s CSBC.