January 16, 2019 | Local, Naval
HONG KONG, Jan. 15, 2019 /CNW/ - Seaspan Corporation (NYSE: SSW) ("Seaspan") announced today the closing of the second tranche of the $1 billion aggregate investment commitment by Fairfax Financial Holdings Limited and its affiliates (collectively, "Fairfax") in Seaspan. As with Fairfax's initial $500 million investment in Seaspan, and pursuant to definitive agreements entered into on March 13, 2018 and announced on March 14, 2018, this second tranche of funding (the "Second Fairfax Investment") is structured as a $250 million issuance of (i) 5.50% senior notes due 2026 and (ii) approximately 38.46 million warrants (the "2019 Warrants"). Pursuant to a definitive agreement entered into and announced on May 31, 2018, Fairfax has agreed to immediately exercise the 2019 Warrants at an exercise price of $6.50per warrant, for additional equity proceeds to Seaspan of $250 million. As a result, Seaspan's aggregate proceeds from the Second Fairfax Investment will be $500 million.
This brings Fairfax's total investment in Seaspan to $1 billion, the proceeds of which will be used to fund future growth initiatives, repay debt and for general corporate purposes. With the closing of the Second Fairfax Investment, Fairfax's aggregate shareholdings in Seaspan are 76.9 million Class A common shares or approximately 36% of shares outstanding.
Fairfax continues to hold the 25 million seven year warrants, with an exercise price of $8.05, which were issued to it on July 16, 2018.
Summary of Fairfax Investments1
|
Investment |
Date Issued/Exercised |
Proceeds to Seaspan |
|
2025 Notes |
February 14, 2018 |
$250 million |
|
2018 Warrants |
July 16, 2018 |
$250 million |
|
2026 Notes |
January 15, 2019 |
$250 million |
|
2019 Warrants |
January 15, 2019 |
$250 million |
|
1 |
Does not include the 25 million seven year warrants outstanding as of the date hereof |
David Sokol, Chairman of Seaspan Corporation commented, "The closing of this follow-on Fairfax investment bolsters Seaspan's balance sheet for the future. Seaspan's management team and Board of Directors are proud to continue building upon the strong partnership created with Fairfax. This additional investment will enhance Seaspan's ability to execute on our long-term goals of deleveraging, strengthening our balance sheet, and creating value through disciplined and thoughtful capital allocation."
Prem Watsa, Chairman and Chief Executive Officer of Fairfax said, "With the closing of this investment, we are excited to expand our partnership with Seaspan, which now represents one of Fairfax's largest investments."
About Seaspan
Seaspan is a leading independent charter 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. Seaspan's operating fleet consists of 112 containerships with a total capacity of more than 900,000 TEU, an average age of approximately 6 years and an average remaining lease period of approximately 4 years, on a TEU-weighted basis.
Seaspan has the following securities listed on The New York Stock Exchange:
|
Symbol: |
Description: |
|
SSW |
Class A common shares |
|
SSW PR D |
Series D preferred shares |
|
SSW PR E |
Series E preferred shares |
|
SSW PR G |
Series G preferred shares |
|
SSW PR H |
Series H preferred shares |
|
SSW PR I |
Series I preferred shares |
|
SSWN |
6.375% senior unsecured notes due 2019 |
|
SSWA |
7.125% senior unsecured notes due 2027 |
|
SSW25 |
5.500% senior notes due 2025 |
About Fairfax Financial Holdings Limited
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
Investor Inquiries:
Mr. Matt Borys
Investor Relations
Seaspan Corporation
Tel. +1-778-328-5340
Email: mborys@seaspanltd.ca
SOURCE Seaspan Corporation
April 6, 2022 | Local, Aerospace, Security
Canada wants to ensure that future air accident investigations are credible and transparent, including in conflict-of-interest situations.
May 2, 2022 | Local, Land
Après les USA qui vont fournir 90 pièces de 155 mm et le Canada qui en enverra six, c'est au tour des Australiens de contribuer au renforcement de...
January 7, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security
Over the past months, over 30 projects from the Competitive Projects' first Call for Proposals have advanced to Component 1b and signed $1M dollar contracts with IDEaS. In the upcoming weeks, many more are going to be posted on our web page. Competitive Projects Funding Recipients (as of December 2019) Additionally, Innovation Networks have signed 12 contribution agreements valued at nearly $18M to fund small research networks, or Micro-nets. These research communities will increase Canadian scientific capacity in a number of areas like advanced materials (detection avoidance and physical protection), and autonomous systems (trust and barriers to adoption). See the all newly signed recipients: Innovation Networks – Recently Funded Micro-Nets Corrosion Sandbox: Rust Never Sleeps Test your best technologies to find corrosion trouble spots for the Royal Canadian Navy (RCN). The next IDEaS sandbox will take place at the Centre for Ocean Ventures & Entrepreneurship (COVE) facility in Dartmouth, Nova Scotia and will focus on corrosion detection on naval vessels. COVE is a collaborative facility for applied innovation in the ocean sector. Participants will get the opportunity to showcase their products on realistic simulations, with successful demonstrations resulting in access to an actual RCN vessel to demonstrate their solution in a real world environment. Watch for the Call for Applicants in January 2020. Thank you, The IDEaS Team
