New Build Financing Proceeding as Planned with
Financing of 13 Vessels Completed to Date
Continued Progress on Balance Sheet
Optimization and Capital Structure
LONDON, June 28, 2021 /PRNewswire/ - Seaspan
Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp.
("Atlas") (NYSE:ATCO), today announced that it has secured
financings (the "Concluded Financings") for 13 of the previously
announced 45 newbuild containerships (the "Newbuild Vessels")
ordered by Seaspan from December 2020
through June 2021. The Concluded
Financings total approximately $1.3
billion of funding with respect to the 13 Newbuild
Vessels, which have an aggregate purchase price of approximately
$1.4 billion. The 13 Newbuild Vessels
are expected to generate $2.7 billion
of gross contracted cash flows over the duration of their long-term
charters, which will commence upon delivery of each vessel. The 13
Newbuild Vessels are expected to be delivered in the fourth quarter
of 2021 and extend through the first quarter of 2024.
Atlas and its subsidiary, Seaspan do not usually provide such
updates, however given the magnitude of change in the
composition of capital structure and impact on growth investment
and related financing, this update is being provided to ensure full
transparency. Please refer to Atlas' Form 6-K, as filed today with
the Securities and Exchange Commission.
Graham Talbot, CFO of Atlas and
Seaspan, commented: "The financing commitments for 13 newbuilds
affirms the company's growth trajectory for the foreseeable future,
and provides transparency on fleet expansion and related funding.
Additionally, we have made significant progress toward simplifying
our balance sheet and anticipate both further financial
enhancements and the substantial completion of newbuild financing
in the third quarter of 2021, with the exception of the eight
newbuilds announced in June. These significant financing
initiatives provide investors with a clearer picture of the
reliable and proven growth that has become the hallmark of
Seaspan."
Newbuild Concluded Financings
Seaspan is pleased to announce that it has secured financing
during the second quarter of 2021, for 13 of the Newbuild Vessels
by entering into $1.3 billion in
sale-leaseback financing arrangements ahead of plan as announced
during Atlas' Q1 2021 earnings call. Seaspan noted that it has made
substantial progress securing financing commitments for the
remaining undelivered 32 Newbuild Vessels. Of these 32 Newbuild
Vessels, 24 are anticipated to complete financings during the third
quarter of 2021, while optimal financing is being assessed for the
remaining eight Newbuild Vessels, including six announced
today.
Seaspan Liquidity Update
As of May 31, 2021, Seaspan had
total liquidity of $1,386.6 million,
consisting of $657.1 million of cash
and cash equivalents and $729.5
million of availability under undrawn committed credit
facilities. This does not include cash and liquidity at Atlas or
other subsidiaries.
Fairfax Amendment & Exchange
On June 14, 2021, Atlas announced
the Fairfax Exchange of $300.0
million of the Fairfax Notes, and amendment of $300.0 million of the Fairfax Notes. As at
March 31, 2021, the $600.0 million of Fairfax Notes represented a
liability on the Atlas balance sheet of $474.6 million, which represents the $600.0 million principal balance net of
unamortized debt discount of $125.4
million. Atlas expects to report a non-cash expense of
approximately $51.5 million in its
financial results for the quarter ending June 30, 2021, representing the write-off of the
existing associated debt discount and amortization of deferred
financing fees. Following the Fairfax Exchange, $300.0 million of Fairfax Notes remain
outstanding with an associated debt discount of $73.1 million as at March
31, 2021. The remaining debt discount will continue to be
amortized over the term of the remaining Fairfax Notes, recognized
through interest expense, or will be written off as a non-cash
expense if the Fairfax Notes are repaid prior to maturity.
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. At March 31,
2021, Seaspan's fleet consisted of 127 containerships
representing total capacity of approximately 1,073,200 TEU. On
May 19, 2021, we announced the
delivery of two second-hand vessels, increasing Seaspan's operating
fleet to 129 vessels and 1,090,200 TEU. We also have 45 vessels
under construction, including six announced in a separate press
release today, and have agreed to purchase two additional
second-hand vessels, increasing total capacity to 1,784,200 TEU, on
a fully delivered basis. For more information visit
seaspancorp.com.
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. 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.
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SOURCE Atlas Corp.