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December 8, 2020

Seaspan signs purchase orders to build five containerships

Atlas Corporation subsidiary Seaspan has signed purchase orders for the construction of five 12,200 twenty-foot equivalent unit (TEU) containerships.

Atlas Corporation subsidiary Seaspan has signed purchase orders for the construction of five 12,200 twenty-foot equivalent unit (TEU) containerships.

Following the delivery, all five ships will start 18-year charters with a global liner company and will be subject to vessel purchase obligations at the conclusion of the charters.

The ships will be financed from additional borrowings and cash on hand.

The deal is expected to add approximately $910m of contracted cash flows over the charter period.

The company has not disclosed the delivery time of the vessels.

Seaspan chairman, president, and CEO Bing Chen said: “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.”

In November, Seaspan received the delivery of two 12,000 TEU containerships constructed in 2018.

The two vessels began long-term time charters with global liners.

The acquisitions were announced in September.

The company financed the acquisitions worth $176m with additional borrowings and cash on hand.

After this deal, Seaspan’s global fleet increased to 127 vessels with approximately 1,073,000 TEU capacity.

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