Seaspan to purchase two containerships for $146m

24 July 2020 (Last Updated July 24th, 2020 11:07)

Atlas subsidiary Seaspan has signed an agreement to acquire two containerships in a $146m cash transaction.

Seaspan to purchase two containerships for $146m
Seaspan Corporation has 125 vessels in the fleet with a total capacity of 1,049,000 TEU. Credit: Micheal Treu.

Atlas subsidiary Seaspan has signed an agreement to acquire two containerships in a $146m cash transaction.

The company plans to finance the acquisition with additional borrowings and cash on hand.

The vessel delivery is expected in the third quarter of this year, subject to customary closing conditions.

One of the two 13,000 twenty-foot equivalent unit (TEU) vessels was constructed in 2010, while the other was built in 2011.

With the acquisition, Seaspan’s total fleet has increased to 125 vessels with 1,049,000 TEU capacity.

Seaspan CEO, chairman and president Bing Chen said: “I am extremely proud of our team’s consistent discipline and execution during this unprecedented time.

“Despite the extreme market conditions, we will have successfully acquired a total of 13 high-quality vessels backed by long-term charters with three different leading global liners over the past year and during the height of Covid-19.

“This is a true testament to our resilient business model and best-in-class integrated platform, as well as the committed and creative partnerships with our liner customers who trust us as their scalable, reliable, long-term solutions provider.”

Seaspan chief financial officer Ryan Courson added: “This transaction further demonstrates our patience in allocating capital at the right time and our ability to source and execute investments to achieve attractive rates of return through economic cycles.

“We remain committed to maintaining the strength of our balance sheet, including a focus on maintaining liquidity, which stands today at over $400m, while continuing our disciplined approach to strategic growth opportunities.”

In April, Seaspan received the delivery of the final four high-quality, eco-modern vessels, which started a five-year-term charter with a global liner.