Seaspan Strengthens its Customer Partnership with a Leading European Liner Forward Fixing Contracts for 18 Containerships
On March 16, 2022, Seaspan Corporation, a subsidiary of Atlas Corp. (NYSE: ATCO), announced an agreement with a major European liner to extend charter terms for 18 containerships, previously set to roll-off in 2023 and 2024, now extending to 2025. This deal is projected to generate approximately $0.2 billion in incremental gross contracted cash flow over 2023-2025. CEO Bing Chen emphasized the partnership's effectiveness in providing predictable cash flows and minimizing roll-off risks.
- Extension of charters for 18 containerships until 2025 enhances cash flow predictability.
- Projected incremental gross contracted cash flow of $0.2 billion over the next three years.
- None.
LONDON, UK, March 16, 2022 /PRNewswire/ - Seaspan Corporation ("Seaspan"), a wholly-owned subsidiary of Atlas Corp. ("Atlas") (NYSE: ATCO), today announced that it has entered into an agreement with a major European liner customer to forward fix contracts, extending current charter terms for 18 containerships. The vessels, approximately 83,750 TEU in aggregate, were previously scheduled to roll-off charters in 2023 and 2024, respectively. These charters have now been extended into 2025. Over the course of 2023 through 2025, these contract extensions are expected to generate approximately
Bing Chen, President and CEO of Atlas, commented, "The forward fixing of these 18 vessels is another demonstration of Seaspan delivering creative customer solutions through our long-term partnership model with industry-leading customers. The immediate result of forward fixing these vessels further contributes to minimizing our roll-off profile through 2025 and underlines Seaspan's strength in generating quality and predictable cash flows. Our customers truly value our consistent operational excellence, scale, and flexibility. Through this mutually beneficial approach, we continue to provide strong support in addressing our customers' needs while strengthening both of our businesses."
Note:
- The current charters and related forward fixtures have various durations, each with a stated minimum and maximum term or periods for re-delivery. The charter rate is based on a market rate within a certain floor and ceiling. The calculation is based on the midpoint of the floor and ceiling of the current charter and forward fixture.
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 of December 31, 2021, Seaspan's operating fleet consisted of 133 vessels with a total capacity of 1,152,550 TEU and an additional 67 under construction, increasing total fleet capacity to 1,963,950 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 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, 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.
FAQ
What recent agreement did Atlas Corp. announce?
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When are the charters for the containerships set to now expire?
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