16 janvier 2019 | Local, Naval

Seaspan Announces Closing of Second $500 Million Investment by Fairfax Financial Holdings Limited

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

https://www.newswire.ca/news-releases/seaspan-announces-closing-of-second-500-million-investment-by-fairfax-financial-holdings-limited-848167000.html

Sur le même sujet

  • Airbus reports strong progress in generating FWSAR work in Canada

    7 décembre 2018 | Local, Aérospatial

    Airbus reports strong progress in generating FWSAR work in Canada

    Airbus reports it is on track to provide Canadian industry with the required level of high-value work associated with the fixed-wing search and rescue (FWSAR) aircraft replacement in-service support (ISS) program. In its first FWSAR Value Proposition ISS annual report to the Government of Canada, submitted earlier this year and covering 2017, the company declared that more than 80 per cent of the ISS work was already being performed by Canadian industry in Canada. That data has now been validated and accepted by Canada. The activity, led by Airbus and its Canadian ISS integration partner AirPro – a joint venture with PAL Aerospace – is rapidly generating work and employment at partners such as CAE and Accenture. AirPro itself has already recruited nearly 20 highly qualified full-time staff to work on FWSAR ISS, and is adding resources in fields such as aeronautical engineering, architecture, construction, information technology and project management. More than 125,000 Canadian labour hours of work were performed by five companies in 2017 and the figure will grow more rapidly as many other companies begin their supply roles further into the program. The AirPro activity in particular will markedly increase as the Airbus CC-295 aircraft enters service and day-to-day ISS activities such as maintenance begin. Simon Jacques, president of Airbus Defence and Space in Canada, said: “We are proud of having made such a successful start to the development and transfer of capability to Canada with all the associated high value work that it brings. Ensuring an active role for AirPro in this set-up phase will ensure that it has a solid preparation for its ISS role in the operational phase. And this new expertise has the potential to be reused in other Canadian programs.” Canada's Industrial and Technological Benefits (ITB) Policy applies to the FWSAR contract and ensures that the total value of the contract is leveraged resulting in high-value jobs in the Canadian economy. The FWSAR program is supporting some $2.5 billion in Industrial and Technological Benefits to Canada, through high-value, long-term partnerships with Canadian industry. “The work done in Canada as part of the fixed-wing search and rescue project demonstrates the tangible benefits of our Industrial and Technological Benefits Policy for Canadian industry,” said the Honourable Navdeep Bains, minister of Innovation, Science and Economic Development. “This project will provide the Canadian Armed Forces with the equipment and services they need to keep Canada safe, and the Industrial and Technological Benefits Policy ensures Canadians have access to middle-class jobs, growing our economy along the way.” https://www.skiesmag.com/press-releases/airbus-reports-strong-progress-in-generating-fwsar-work-in-canada

  • Air Force aiming to have armed drones in the air in next six years: commander

    6 février 2019 | Local, Aérospatial

    Air Force aiming to have armed drones in the air in next six years: commander

    By The Canadian Press OTTAWA — The Royal Canadian Air Force is hoping to pull the trigger on the purchase of new drones within six years after spending nearly two decades weighing different options. The Canadian Forces has been working since the early 2000s to find unmanned aerial vehicles that can conduct surveillance over Canada's vast territory and support overseas missions. Yet aside from purchasing a small number of temporary, unarmed drones for the war in Afghanistan, the military has never been able to make much progress on a permanent fleet. Air Force commander Lt.-Gen. Al Meinzinger says he believes that is about to change after the Trudeau government became the first to officially authorize the acquisition of a fleet of armed UAVs through its defence policy. In an interview, Meinzinger says the air force is nearly finished drawing up options — where it has been stuck for years — and will soon move into the next phase by presenting its proposals to procurement officials. While the military has welcomed Canada's decision to buy armed drones and promised to abide by international laws, some arms-control advocates have expressed concern about the legal grey zone such weapons inhabit. The Canadian Press https://www.nationalnewswatch.com/2019/02/06/air-force-aiming-to-have-armed-drones-in-the-air-in-next-six-years-commander-3/#.XFsws1xKiUl

  • Kratos Supports Successful US Navy and MDA Intercept Test Against Multiple Ballistic Missile and Anti-Ship Cruise Missile Targets

    28 novembre 2023 | Local, Terrestre, Sécurité

    Kratos Supports Successful US Navy and MDA Intercept Test Against Multiple Ballistic Missile and Anti-Ship Cruise Missile Targets

    known as Aegis Readiness Assessment Vehicle by two Standard Missile 3 Block IA interceptors during the test event Vigilant Wyvern, also known as Flight Test Aegis Weapon System-48 

Toutes les nouvelles