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November 15, 2019

Seaspan to purchase six containerships for $380m

Containership owner Seaspan has signed an agreement to buy a fleet of six containerships in a deal valued at about $380m in cash.

Containership owner Seaspan has signed an agreement to buy a fleet of six containerships in a deal valued at approximately $380m.

Three 10,700 twenty-foot equivalent unit (TEU) vessels were built in 2012, two 9,200TEU vessels in 2013, and one 9,200TEU vessel was built in 2014.

Together, the vessels have 59,700TEU capacity and currently operate under a long-term charter with a global liner. Delivery is expected in December.

Following the vessel delivery, along with a ship that was announced earlier, Seaspan’s total fleet will grow to 119 vessels with about 975,000TEU capacity.

Seaspan president and CEO Bing Chen said: “Upon delivery of all vessels, we will grow our fleet to 119 vessels, and further cement Seaspan’s position as the leading global independent charter owner and operator of containerships.

“As consolidation continues to play out in the containership space, we are well-positioned to capture great opportunities in the second-hand market and to pursue attractive new-build programmes.”

Seaspan plans to finance the purchase using additional borrowings and cash on hand.

The acquisition is subject to customary closing conditions and is scheduled for completion in December.

Seaspan chief financial officer Ryan Courson said: “This fleet acquisition of six high-quality vessels contributes substantial long-term value to our asset portfolio through significant incremental contracted cash flows, increasing Seaspan’s minimum future contracted revenue to approximately $4.2bn.

“We will continue to remain disciplined in achieving our return objectives while maintaining the strength and flexibility of our balance sheet.”

In April, Seaspan implemented KVH Industries’ mini-VSAT Broadband connectivity for all 107 managed vessels in its global fleet.

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