Seaspan Announces Order for Four 7,700 TEU Dual-Fuel LNG Containership Newbuilds

Rhea-AI Summary

Seaspan Corporation, a subsidiary of Atlas Corp. (NYSE: ATCO), has secured agreements to construct four 7,700 TEU dual-fuel liquefied natural gas containerships. Expected delivery is set for Q3 and Q4 of 2024, with long-term charters planned with a major global liner customer. These charters are projected to generate approximately $0.95 billion in gross contracted cash flow. The financing will come from existing liquidity, operational cash flow, and additional borrowings, pending certain closing conditions.

Positive

• Secured agreements for four new dual-fuel containerships, expanding fleet capabilities.
• Projected gross contracted cash flow of $0.95 billion from long-term charters.

Negative

• Potential risks related to delivery delays of the vessels.
• Possible early termination of charters could impact revenue stability.

LONDON, UK, May 18, 2022 /PRNewswire/ - Seaspan Corporation ("Seaspan"), a wholly-owned subsidiary of Atlas Corp. ("Atlas") (NYSE: ATCO), today announced that it has entered into agreements with a major shipyard to construct four ultra-modern 7,700 TEU dual-fuel liquefied natural gas containership newbuilds (the "Vessels"). The Vessels are anticipated to be delivered in the third and fourth quarters of 2024, and will enter into long-term charters with a leading global liner customer upon completion. The charters include purchase obligations at the conclusion of the charter terms, and will contribute approximately $0.95 billion of gross contracted cash flow. The Vessels are anticipated to be financed through existing liquidity, cash flow from operations, and additional borrowings. The transaction remains subject to certain closing conditions.

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 disciplined capital deployment to create sustainable shareholder value. We target long-term, risk-adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. For more information visit atlascorporation.com.

About Seaspan

Seaspan is the largest global containership lessor, primarily focused on long-term, fixed-rate leases with the world's largest container shipping liners. As at March 31, 2022, Seaspan's operating fleet consisted of 132 vessels with a total capacity of 1,147,980 TEU, and an additional 67 vessels under construction, excluding those announced today, increasing total fleet capacity to 1,959,380 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. 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 that the Vessels will not be delivered when anticipated or at all; the potential for early termination of the charters and Seaspan's inability to replace them; 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, 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.

FAQ

What did Seaspan Corporation announce on May 18, 2022?

Seaspan announced agreements to build four dual-fuel LNG containerships with expected delivery in late 2024.

How much gross contracted cash flow is expected from the new vessels?

The new vessels are expected to generate approximately $0.95 billion in gross contracted cash flow.

What will finance the new containership builds by Seaspan?

The construction will be financed through existing liquidity, cash flow from operations, and additional borrowings.

What are the expected delivery dates for the new vessels?

The vessels are anticipated to be delivered in the third and fourth quarters of 2024.

What risks are associated with the new vessel agreements?

Risks include potential delivery delays and early termination of charters.