Seaspan Corporation

NYSE : SSW


Seaspan Corporation

January 16, 2013 08:30 ET

Seaspan Signs Newbuilding Contracts for Fuel Efficient SAVER Design 14,000 TEU Class Vessels at HHI

Secures 10+2 Year Time Charters with Yang Ming

HONG KONG, CHINA--(Marketwire - Jan. 16, 2013) - Seaspan Corporation (NYSE:SSW) announced today that it has signed contracts for the construction of five 14,000 TEU class newbuilding containerships at Hyundai Heavy Industries Co., Ltd. The vessels are scheduled for delivery in 2015 and will be constructed using Seaspan's fuel efficient SAVER design. Concurrently with executing the newbuilding contracts, Seaspan signed 10-year, fixed-rate time charters for the vessels with Yang Ming Marine Transport Corporation. After the initial 10-year charter periods, Yang Ming may extend the charter for each vessel up to an additional two years.

These five 14,000 TEU class containerships remain subject to allocation in relation to the right of first refusal agreement with Greater China Intermodal Investments LLC, an investment vehicle established by an affiliate of global alternative asset manager The Carlyle Group, and Blue Water Commerce LLC. Seaspan intends to fund construction of its portion of these five containerships initially with a portion of the proceeds of its previous Series C and D preferred share offerings and, subsequently over the next few quarters, with debt financing. Seaspan is considering various sources of debt financing to which it has access.

About Seaspan

Seaspan provides the world's major shipping lines with an attractive outsourced alternative to vessel ownership by offering long-term leases on large, modern containerships combined with industry leading ship management and a reputation for safety, quality and innovation. Seaspan's managed fleet of its own and third party vessels consists of 81 containerships representing a total capacity of approximately 545,000 TEU, including 12 ships scheduled for delivery by the end of 2015, up to eight of which will be owned by Seaspan. Seaspan's current operating fleet of 69 vessels has an average age of approximately five years and an average remaining lease period of approximately seven years.

Seaspan's common shares, Series C Preferred Shares and Series D Preferred Shares are listed on The New York Stock Exchange under the symbols "SSW", "SSW PR C" and "SSW PR D", respectively.

STATEMENT 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), which reflect management's current views with respect to certain future events and performance, including, in particular, statements regarding: expansion of Seaspan's fleet, including the delivery of newbuilding vessels pursuant to construction contracts; the allocation of newbuilding vessels; financing for vessels; and vessel deliveries. Although these statements are based upon assumptions Seaspan believes to be reasonable, they are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to: the availability and cost to Seaspan of financing its fleet expansion; the financial condition of shipyards, charterers, lenders, refund guarantors and other counterparties and their ability to perform their obligations under their agreements with Seaspan; shipyard construction delays; and other factors detailed from time to time in Seaspan's periodic reports and filings with the Securities and Exchange Commission, including Seaspan's Report on Form 20-F for the year ended December 31, 2011. Seaspan expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in Seaspan's views or expectations, or otherwise.

Contact Information

  • Seaspan Corporation - Investor Relations Inquiries
    Mr. Sai W. Chu
    Chief Financial Officer
    604-638-2575
    www.seaspancorp.com

    The IGB Group - Media Inquiries
    Mr. Leon Berman
    212-477-8438