Seaspan's Quality Growth Continues, Acquiring Two 15,000 TEU Containerships on Long-Term Charters
Seaspan Corporation, a subsidiary of Atlas Corp. (NYSE:ATCO), announced the acquisition of two 15,000 TEU scrubber-fitted containerships on long-term charter with a global customer. The vessels, built in 2019, will enhance Seaspan's fleet efficiency and emissions reduction capabilities, expected to be delivered by late Q2 2021. This transaction reflects Seaspan's commitment to growth through strategic partnerships and extends its long-term contracted revenue profile, which totaled approximately $4.1 billion as of September 30, 2020. The acquisition adds new capacity amidst ongoing fleet expansion.
- Acquisition of two high-quality 15,000 TEU vessels enhances fleet efficiency.
- Extends long-term contracted revenue profile, currently at $4.1 billion.
- Integration of vessels expected to bolster competitive position and service offerings.
- Financing of the acquisition primarily through additional borrowings which may increase financial strain.
LONDON, UK, March 2, 2021 /PRNewswire/ - Seaspan Corporation ("Seaspan"), a wholly owned subsidiary of Atlas Corp. ("Atlas") (NYSE:ATCO), today announced that it has entered into an agreement to acquire two young, high-quality 15,000 TEU scrubber-fitted containerships ("the Vessels") on long-term charter with a long-standing global liner customer. The Vessels, built in 2019, feature industry-leading efficiency and emissions reduction technologies, and are anticipated to be delivered late in the second quarter of 2021.
Bing Chen, Chairman, President and CEO of Seaspan, commented, "This transaction further demonstrates our consistent quality growth through our creative customer partnerships despite the market cycles. Seaspan's fleet composition is optimized with each new vessel, enabling us to provide our customers with more scale, efficiency, flexibility and reliability. The additions of these high-quality vessels also extend our long-term contracted revenue profile. Together with our recent large number of upcoming newbuilds, we continue to consistently drive quality growth while further differentiating our fully-integrated service offerings and resiliency of our business model."
The Vessels are anticipated to be financed from additional borrowings as well as cash on hand. As of September 30, 2020, Seaspan's global fleet consisted of 127 vessels and approximately 1,073,000 TEU, with total contracted revenue of approximately
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. As of September 30, 2020, 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 seven years and an average remaining lease period of approximately four years, on a TEU-weighted 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 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.
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SOURCE Atlas Corp.
FAQ
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