Seaspan Announces $500 Million Offering of Senior Unsecured Blue Transition Bonds
On July 6, 2021, Seaspan Corporation, a subsidiary of Atlas Corp. (NYSE: ATCO), announced plans to offer $500 million in senior unsecured notes due 2029. The proceeds will finance various eligible projects outlined in the offering memorandum. The notes are senior unsecured obligations of Seaspan, set to pay interest semiannually and mature on August 1, 2029. They will be sold only to qualified institutional buyers under Rule 144A and may not be registered under the Securities Act. Seaspan's operational fleet currently comprises 131 vessels with a total capacity of approximately 1,120,200 TEU.
- Offering $500 million in senior unsecured notes may provide capital for growth.
- Recent delivery of vessels boosts Seaspan's operational fleet to 131 vessels, increasing capacity to 1,120,200 TEU.
- Notes are not guaranteed by Atlas or subsidiaries, indicating a higher risk for investors.
- The offering may dilute potential returns for existing shareholders.
LONDON, July 6, 2021 /PRNewswire/ - Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE: ATCO), today announced that it intends to offer, subject to market conditions and other factors,
The Notes will be senior unsecured obligations of Seaspan. The Notes will not be guaranteed by Atlas or any of its subsidiaries. The Notes are expected to pay interest semiannually and will mature on August 1, 2029, unless earlier redeemed or repurchased in accordance with their terms. The final terms of the Notes, including the interest rate and other terms, will be determined by negotiations between Seaspan and the initial purchasers of the Notes.
The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may be offered and sold outside the United States to a non-U.S. person pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these Notes, nor shall there be any offer or sale of the Notes in any state, or jurisdiction in which such offer, solicitation, or sale would be unlawful.
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.
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. With the delivery of the two vessels announced separately today, Seaspan's operational fleet consists of 131 vessels with a total capacity of 1,120,200 TEU. We also have 55 vessels under construction, increasing total capacity to 1,854,200 TEU, on a fully delivered basis.
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. 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, including those relating to the proposed offering and use of proceeds therefrom, 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, and the offering memorandum. 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.
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