LONDON, July 6, 2021 /PRNewswire/ - Seaspan Corporation
("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas")
(NYSE:ATCO), today announced that it has entered into long-term
charters with ZIM Integrated Shipping Services Ltd. ("ZIM") (NYSE:
ZIM) relating to ten ultra-modern 7,000 TEU dual-fuel liquefied
natural gas (LNG) containership newbuilds (the "LNG
Containerships"). Seaspan will enter into agreements with a
major shipyard to construct the LNG Containerships, which are
anticipated to begin deliveries in the fourth quarter of 2023 and
through 2024. The LNG Containerships are anticipated to be financed
from existing liquidity, cash flow from operations, and additional
borrowings.
Transaction Highlights
- Ten modern 7,000 TEU dual-fuel LNG vessels
- Aggregate purchase price of approximately $1.05 billion
- 12-year charters totalling approximately $1.8 billion of gross contracted cash flow
Management Commentary
Bing Chen, Chairman, President and CEO of Seaspan, commented,
"We are very pleased to collaborate with ZIM on this
forward-thinking project which provides advanced designs,
competitive pricing and valuable deliveries. We see these modern
7,000 TEUs to be the natural successor to the aging global pool of
conventional vessels in the 4,000 to 9,000 TEU range, where
relatively little fleet renewal has taken place. We are
experiencing strong customer interest for this vessel size."
Graham Talbot, CFO of Seaspan,
added, "We continue to execute on our growth plan in a prudent
manner. In line with all of our vessel investments, we have
de-risked the $1.05 billion capital
expenditure associated with the dual-fuel LNG Containerships by
signing long-term charters with a leading global liner representing
approximately $1.8 billion of
contracted cash flow. We intend to maintain balance sheet and risk
management integrity while continuing the growth track that we have
established over Seaspan's 20-year history. We remain diligent on
our path toward an investment grade credit rating, and operational
scale will play an important role in this pursuit."
Since December 2020, and including
this announcement, Seaspan has announced 55 newbuild vessel orders
and the acquisition of four second-hand vessels, all four of which
have since been delivered. The chart below summarizes vessels which
Seaspan has announced but has not yet received delivery of:
Vessel
Class
|
Newbuilds
|
Secondary
Market
|
Total
Vessels
|
Total
TEU
|
7,000 TEU
LNG
|
10
|
---
|
10
|
70,000
|
12,000 TEU
|
6
|
---
|
6
|
72,000
|
12,200 TEU
|
5
|
---
|
5
|
61,000
|
15,000 TEU
|
16
|
---
|
16
|
240,000
|
15,000 TEU
LNG
|
10
|
---
|
10
|
150,000
|
15,500 TEU
|
6
|
---
|
6
|
93,000
|
24,000 TEU
|
2
|
---
|
2
|
48,000
|
Total
|
55
|
---
|
55
|
734,000
|
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 primarily charter our vessels on 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. Since then, we have announced the delivery of four
second-hand vessels, increasing Seaspan's operating fleet to 131
vessels and 1,120,200 TEU. We also have 55 vessels under
construction, increasing total capacity to 1,854,200 TEU, on a
fully delivered basis. For more information visit
seaspancorp.com.
Cautionary Note Regarding 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, including
forward-looking statements regarding the expected benefits of the
vessel transactions to Atlas's financial condition and results from
operations. 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' 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.