LONDON, Nov. 3, 2020 /CNW/ - Seaspan Corporation
("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas")
(NYSE: ATCO), today announced that it has taken delivery of two
high-quality 12,000 TEU containerships ("the Vessels") built in
2018. Both vessels have commenced long-term time charters with
leading global liners. The acquisitions were previously announced
in September 2020.
The Vessels were financed from additional borrowings as well as
cash on hand. The transaction is expected to be immediately
accretive to Atlas' funds from operations per diluted
share1, increase long-term contracted revenue by over
$165 million, and contribute
approximately $20 million of
annualized Adjusted EBITDA2 for the year 2020. Seaspan's
global fleet consists of 127 vessels and approximately 1,073,000
TEU, with total contracted revenue of approximately $4.4 billion, and a weighted average remaining
lease period of approximately 4 years.
Bing Chen, Chairman, President and Chief Executive Officer of
Seaspan, commented, "We are pleased to continue the execution of
our quality growth strategies, including consistent expansion of
our fleet with 15 high-quality vessels added since December of
2019, which are all backed by long-term charters. Our relentless
focus on disciplined capital allocation combined with consistent
operational excellence has resulted in sustainable growth and
scale, further enhancing our ability to deliver best-in-class fully
integrated services. Our strong and creative customer partnerships
continue to provide unique solutions within the containership trade
and distinguish our value-added approach to driving mutually
beneficial outcomes for all stakeholders."
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 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 with industry leading ship management services. We
charter our vessels primarily pursuant to long-term, fixed-rate,
time charters to the world's largest container shipping liners.
Seaspan's fleet consists of 127 containerships, representing total
capacity of approximately 1,073,000 TEU. Seaspan's operating fleet
of vessels has an average age of approximately 7 years and an
average remaining lease period of approximately 4 years, on a
TEU-weighted basis.
For more information visit seaspancorp.com
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1 Funds from operations ("FFO") and
FFO per share represent net earnings adjusted for depreciation and
amortization, gains/losses on sale, unrealized change in fair value
of derivative instruments, loss on foreign currency repatriation,
change in contingent consideration asset and certain other items
that the Company believes are not representative of its operating
performance. FFO and FFO per share are useful performance measures
because they exclude those items that the Company believes are not
representative of its performance.
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2 Adjusted EBITDA represents net
income before interest, taxes, depreciation and amortization,
impairments, write-downs and gains/losses on sale, unrealized
change in fair value of derivative instruments, loss on foreign
currency repatriation, realized gains/losses on interest rate
swaps, realized losses on interest rate swap amendments and
terminations, and change in contingent consideration asset. The
Company believes that this measure is useful in assessing
performance and highlighting trends on an overall basis.
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3 As
of June 30, 2020, adjusted for vessels added to the fleet after
that date.
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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
transaction 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 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 potential for early termination of
the charters and Seaspan's inability to replace them; the
possibility that we will not be able to continue to execute on our
growth strategy; and other factors detailed from time to time in
our periodic reports and filings with the Securities and Exchange
Commission, including Atlas's Annual Report on Form 20-F for the
year ended December 31, 2019. 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.
This release includes non-GAAP financial measures. These
non-GAAP financial measures, which include FFO per share and
Adjusted EBITDA, should not be considered substitutes for measures
of performance prepared in accordance with GAAP and readers are
urged to review the Company's audited financial statements. Atlas
does not provide quantitative reconciliation of forward-looking FFO
per share or Adjusted EBITDA to its most directly comparable GAAP
financial measure because it is unable to predict with reasonable
certainty the ultimate outcome of certain significant items without
unreasonable effort. These items include, but are not limited to,
income tax expense, gains/losses on sale, unrealized and realized
change in derivative instruments, change in contingent
consideration asset and loss on foreign currency repatriation.
These items are uncertain, depend on various factors, and could
have a material impact on GAAP-reported results for the future
period.
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SOURCE Atlas Corp.